Benefytt, Assurance insurance $13.5M class action settlement

Benefytt and Assurance IQ agreed to a $13.5 million class action lawsuit settlement to resolve claims that it misrepresented its short-term medical insurance plans as “comprehensive.”

The settlement benefits individuals who purchased one or more limited benefit indemnity plans and/or short-term medical plans from Benefytt or through American National, Assurance or Priority Insurance between May 5, 2016, and Dec. 1, 2023, and who paid fees and/or premiums that were not completely refunded or recovered through a chargeback. 

A Medical Expense Subclass includes anyone who meets the class definition and incurred uncovered medical expenses.

According to the class action lawsuit, Benefytt, American National Benefits Group, Assurance and Priority Insurance misrepresented their limited benefit indemnity plans and short-term medical plans as comprehensive health insurance. Plaintiffs in the case say these misrepresentations violated the Racketeer Influenced and Corrupt Organizations Act (RICO).

The Federal Trade Commission ordered Benefytt, a “health insurance” provider, to pay $100 million for allegedly misrepresenting its plans. The company has since been restructured through Chapter 11 bankruptcy. 

The defendants haven’t admitted any wrongdoing but agreed to pay $13.5 million to resolve the RICO class action lawsuit.

Under the terms of the Benefytt settlement, class members can file a claim form receive a pro rata share of the net settlement fund based on the medical expenses they incurred in addition to a “medical expense multiplier.” 

Each class member will be assigned a “total numerator” to be calculated as their unrefunded payments for limited benefit indemnity plans or short-term medical plans  — the “base numerator.” 

They will also be assigned a “medical expense multiplier.” That number will be equal to the base numerator if the class member submits a valid claim form stating under penalty of perjury that they incurred uncovered medical expenses incurred of $25,000 or less. Class members who incurred between $25,000 and $50,000 in medical expenses will receive a multiplier of two. Class members who incurred over $50,000 in medical expenses will receive a multiplier of three. No proof of medical expenses is required to file a claim.

These multipliers will be used to calculate pro rata payments. No payment estimates are available at this time.

The deadline for exclusion and objection is March 1, 2024.

The final approval hearing for the Benefytt insurance class action lawsuit settlement is scheduled for May 30, 2024.

In order to receive benefits under the Benefytt settlement, class members must submit a valid claim form by April 15, 2024.

Who’s Eligible

Individuals who purchased one or more limited benefit indemnity plans and/or short-term medical plans from Benefytt or through American National, Assurance or Priority Insurance between May 5, 2016, and Dec. 1, 2023, and who paid fees and/or premiums that were not completely refunded or recovered through a chargeback. 

There is also a Medical Expense Subclass that includes anyone who meets the class definition and incurred uncovered medical expenses.

Potential Award

Varies

Proof of Purchase

No proof of medical expenses is required to file a claim.

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

04/15/2024

Case Name

Griffin, et al. v. Benefytt Technologies Inc., et al., Case No. 0:20-cv-62371-AHS, in the U.S. District Court for the Southern District of Florida

Final Hearing

05/30/2024

Settlement Website

BenefyttSettlement.com

Claims Administrator

Griffin v. Benefytt
c/o Kroll Settlement Administration LLC
PO Box 5324
New York, NY 10150-5324
833-383-5268

Class Counsel

Charles Nicholas Dorman
Patrick J Sheehan
WHATLEY KALLAS LLP

Matt Carroll
MATT CARROLL LAW LLC

Defense Counsel

Vincent A Sama
Catherine B Schumacher
Daphne Morduchowitz
Sarah Fedner
SEYFARTH SHAW LLP

Martha R Mora
AVILA RODRIGUEZ HERNANDEZ MENA & GARRO LLP