Simple Health Plan Fraud Class Action Certified by Federal Judge

More than 200,000 consumers who were allegedly scammed by Simple Health Plans can reportedly sign on as Class Members under a ruling by a Florida federal judge.

Simple Health Plans, along with its parent companies, Health Insurance Innovations and Health Plan Intermediaries Holdings, were hit with the class action lawsuit after facing federal charges of fraud concerning the marketing and sale of their so-called health insurance. Simple Health Plans, based in Hollywood, was accused of misleadingly marketing insurance and selling inadequate policies.

Consumers complained of unexpected bills and lack of coverage under policies sold by Simple Health Plans, while the company’s founder and executives reportedly siphoned millions from the company.

“The scheme carried out by [Health Insurance Innovations and Health Plan Intermediaries Holdings] through Simple Health Plans created devastating consequences for victims nationwide,” one of the attorneys representing the class said in a statement. “These folks thought they were doing the right thing in purchasing health insurance. Instead, they were left mostly uninsured.”

Earlier this week, U.S. District Judge Raag Singhal certified the class action, ordering the company to notify existing customers about Simple Health Plan’s deceptive sales tactics.

In an earlier order, customers were also given the opportunity to cancel their health plan and opened up a special enrollment period so they can obtain comprehensive health care coverage under the Affordable Care Act (ACA).

“There is good cause to believe that Defendants deceptively marketed and sold limited indemnity plans and non-insurance products such as medical discount or wellness plans…as comprehensive health insurance or its equivalent to thousands of consumers over the past five years,” stated the earlier order issued by the judge.

The Simple Health Plan class action lawsuit alleges that consumers were duped into thinking limited benefit indemnity plans and medical discount plans sold by the company qualified as major medical insurance under the ACA. Allegedly, consumers paid hundreds of dollars a month for these plans but were left with thousands in medical bills when they tried to use them for health care costs.

Simple Health Plan was accused of misleadingly marketing its insurance products, including by using pictures of well-known insurers to advertise plans on its websites. Its call center employees also allegedly deceived consumers about the medical plans they were purchasing.

Reportedly, the company was shuttered by the Federal Trade Commission two years ago under an order halting operations and freezing assets. The FTC is in a protracted legal battle with Simple Health Plan founder, Steven Dorfman, to permanently close the company, according to the Orlando Sentinel.

Health Insurance Innovations, Inc. has faced another class action lawsuit in 2020 over allegedly repeatedly calling consumers on the Do Not Call List in a telemarketing campaign.

Were you scammed into subpar insurance sold through Simple Health Plan? Tell us about your experience in the comment section below!

The lead plaintiffs and certified Class Members are represented by Levine Kellogg Lehman Schneider + Grossman and The Doss Firm.

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

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