Health insurer settles $5M ‘deceptive marketing’ lawsuit with Mass. AG

A Texas health insurance company has settled a lawsuit alleging that it “used deceptive and unfair business practices” to sell Massachusetts residents coverage plans that did not meet state and federal requirements, state prosecutors announced.

Adroit Health Group reached a settlement with the state Attorney General’s Office in which it will pay $5 million to the state and be barred from offering its products to Massachusetts residents, state prosecutors said in a press release.

Adroit Health Group could not be reached for comment Monday afternoon.

State prosecutors allege that Adroit deceptively marketed its products as comprehensive health insurance plans even though the policies did not meet federal and state coverage requirements.

The health insurer misled consumers about their plans’ costs and benefits, failed to provide important plan information, charged consumers without authorization and failed to provide refunds to those who tried to cancel their plans, according to state prosecutors.

Adroit also acted deceptively and unfairly by using various business names, such as “Strata Health Group” and “A1,” state prosecutors argue.

“No company should be allowed to exploit a person’s fundamental need for affordable, comprehensive health coverage,” Massachusetts Attorney General Andrea Campbell said in the release.

As part of the settlement, which was entered in Suffolk County Superior Court, Adroit will be barred from selling, offering or administering any health insurance policies or non-insurance health programs to Massachusetts residents, state prosecutors said.

Additionally, much of the $5 million the state will receive through the settlement will be distributed as restitution to the thousands of Massachusetts customers Adroit has sold health insurance products to since 2016. State prosecutors did not specify how much money would go to consumers, but said that it would organize the payouts.

“While this settlement cannot undo the harm caused by Adroit, it will deliver meaningful relief to affected Massachusetts consumers, hold Adroit accountable for its misconduct and prevent this company from harming Massachusetts consumers again,” Campbell said.

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