Health Insurance Innovations $27.5M Class Action Settlement

HEALTH INSURANCE INNOVATIONS CLASS ACTION SETTLEMENT UPDATE:

• The claim deadline has been extended to Feb. 23, 2022.

Consumers nationwide who purchased plans through Simple Health or Nationwide Health may be eligible for compensation thanks to a $27.5 million Health Insurance Innovations class action settlement.

The Simple Health Class includes consumers who bought limited benefit indemnity plans (LBIPs) or ancillary products through Simple Health and paid fees or premiums that were not recovered through a future chargeback or refund. These fees or premiums were incurred due to medical expenses that weren’t covered by the LBIPs but would’ve been covered by an Affordable Care Act (ACA)-compliant plan.

The Nationwide Health Class is made up of all individuals who purchased the Health Insurance Innovations defendants’ — now known as Benefytt Technologies — limited benefit indemnity plans and/or ancillary products, such as medical discount plans through Nationwide Health within the applicable statute(s) of limitation, and paid fees and/or premiums that were not completely recovered through a refund or chargeback.

In addition to these Classes, Class Members may also belong to one or both of the two subclasses that have been established — the Medical Expense Subclass and the Tax Penalty Subclass. 

The Medical Expense Subclass is made up of individuals who incurred medical expenses not covered by the LBIPs but would have been covered by an ACA-compliant plan. 

The Tax Penalty Subclass includes individuals who incurred a penalty under the ACA’s individual mandate as a result of purchasing the LBIPs, which do not qualify for tax exemptions the way ACA-compliant plans do.

Plaintiffs allege Health Insurance Innovations led them and others to believe the offered “limited benefit indemnity plans” and “medical discount plans” were comprehensive medical insurance when in reality, they do not comply with the ACA.

Benefytt Technologies is adamant it did not do anything wrong and claims it disclosed that the products were not major medical insurance in writing to the plaintiffs. 

Benefytt Technologies, which has 345 total employees, has earned $381.81 million in sales across all locations, according to Dun & Bradstreet. The company largely advertises itself as an “Insurtech” company that provides better ways to get health insurance coverage.

Eligible Class Members who file a claim will receive an equal pro rata share of the settlement fund. 

The exact amount of each Member’s payment will hinge on how many members file valid claims, how much the fees and expenses cost, and the number of people who choose to opt out of the Class.

Class Members who fail to submit a claim won’t be able to get their rightful payment and will no longer be able to seek out a claim against the company about this matter. 

Class Members who want to retain this right to sue must exclude themselves from the Health Insurance Innovations class action settlement by Dec. 27, 2021. 

Class Members who do want to remain in the Class but do not accept the terms of the agreement can file an objection by Dec. 27, 2021.

A final fairness hearing in this class action settlement is scheduled to take place March 31, 2022.

The deadline to file a claim in the Health Insurance Innovations settlement is Feb. 9, 2022.

Who’s Eligible

The Simple Health Class includes consumers who bought limited benefit indemnity plans (LBIPs) or ancillary products through Simple Health and paid fees or premiums that were not recovered through a future chargeback or refund. These fees or premiums were incurred due to medical expenses that weren’t covered by the LBIPs but would’ve been covered by an Affordable Care Act (ACA)-compliant plan.

The Nationwide Health Class is made up of all individuals who purchased the Health Insurance Innovations defendants’ — now known as Benefytt Technologies — limited benefit indemnity plans and/or ancillary products, such as medical discount plans through Nationwide Health within the applicable statute(s) of limitation, and paid fees and/or premiums that were not completely recovered through a refund or chargeback.

In addition to these Classes, Class Members may also belong to one or both of the two subclasses that have been established — the Medical Expense Subclass and the Tax Penalty Subclass. 

The Medical Expense Subclass is made up of individuals who incurred medical expenses not covered by the LBIPs but would have been covered by an ACA-compliant plan. 

The Tax Penalty Subclass includes individuals who incurred a penalty under the ACA’s individual mandate as a result of purchasing the LBIPs, which do not qualify for tax exemptions the way ACA-compliant plans do.

Potential Award

Varies

Proof of Purchase

Policy numbers may be needed

Claim Form

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Claim Form Deadline

02/23/2022

Case Name

Belin, et al. v. Health Insurance Innovations Inc., Case No. 19-cv-61430- SINGHAL/Valle in the U.S. District Court Southern District of Florida, Fort Lauderdale Division

Final Hearing

03/31/2022

Settlement Website

HIIClassAction.com

Claims Administrator

HII Class Action Settlement
c/o JND Legal Administration
PO Box 91235
Seattle, WA 98111
info@hiiclassaction.com
877-379-5990

Class Counsel

Jason Kellogg
Jeffrey C. Schneider
Lawrence A. Kellogg
Victoria J. Wilson
LEVINE KELLOGG LEHMAN SCHNEIDER + GROSSMAN LLP

Jason R. Doss
THE DOSS FIRM LLC

Defense Counsel

David L. Balser, Esq.
KING & SPALDING LLP

Justin W. Chairman, Esq.
MORGAN LEWIS & BOCKIUS LLP