Health Insurance Innovations Pays $27.5M Ending Class Action Alleging It Misrepresented Shoddy Health Plans

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Update:

• The claim deadline for the settlement has passed.
• The final judgment and order were issued April 15, 2022, and the case is now closed. 
• The settlement administrator began issuing checks on June 3, 2022.

Health Insurance Innovations Class Action Settlement Overview: 

• Who: Health Insurance Innovations Inc. reached a $27.5 million class action settlement with health insurance buyers. 
• Why: Plaintiffs allege Health Insurance Innovations participated in a scheme to mislead consumers into buying pointless health insurance policies.
• Where: The class action lawsuit was filed in Florida federal court.

Health Insurance Innovations has reached a $27.5 million class action settlement with consumers who accused the company of running a scam involving the sale of low-grade insurance policies. 

Health Insurance Innovations must also change the way it sells limited benefit indemnity plans and other ancillary products, according to the class action settlement. 

Plaintiffs alleged Health Insurance Innovations either directed, or, at minimum, aided a $150 million conspiracy involving Simple Health Plans LLC that deceived tens of thousands of consumers into buying pointless health insurance plans. 

Health Insurance Innovations Class Action Settlement

Health Insurance Innovations said it will stop selling nearly all of its limited benefit indemnity plans, which plaintiffs allege cost hundreds a dollars a month despite covering nearly none of their medical expenses. 

Agents will now be required to maintain and record all sales calls, under the terms of the class action settlement, which also stipulates that a disciplinary system be put in place for agents who mislead consumers. Outside vendors will also be used as secret shoppers to detect any further fraudulent practices. 

Plaintiffs argued that Health Insurance Innovations’ actions made it guilty of breach of fiduciary duty and unjust enrichment, and put the company in violation of the Racketeer Influenced and Corrupt Organizations Act.

Going forward, Health Insurance Innovations will be required to place disclaimers on its website informing consumers that limited benefit indemnity plans do not constitute as major medical insurance and are not compliant with the Affordable Care Act. 

In other healthcare news, a class action lawsuit was recently filed against UnitedHealthCare by members who allege the company violated its benefit policies by refusing to reimburse them and their providers for anesthesia services. 

Join a class action lawsuit investigation into false advertising of limited benefit health plans (links to paid attorney advertising). 

The plaintiffs are represented by Jason K. Kellogg, Jeffrey C. Schneider, Lawrence A. Kellogg, and Victoria J. Wilson of Levine Kellogg Lehman Schneider & Grossman LLP, and Jason R. Doss of The Doss Firm LLC. 

The Health Insurance Innovations Class Action Lawsuit is Belin, et al. v. Health Insurance Innovations Inc., et al., Case No. 0:19-cv-61430, in the U.S. District Court for the Southern District of Florida.

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• UnitedHealthcare ‘Refused to Reimburse’ Health Insurance Claims for Anesthesia Services, Class Action Alleges
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