In November, a federal judge temporarily shut down Miami-based Simple Health Plans at the request of the FTC, claiming the health insurer made at least $150 million selling fake insurance. The commission accused the health plan’s CEO Stephen Dorfman of misleading consumers to think they were buying comprehensive health plans when they were actually purchasing plans with no coverage for pre-existing conditions or prescription medications.
In a March 18 filing with the U.S. District Court in Fort Lauderdale, Fla., the FTC accused Mr. Dorfman of using “procedural maneuvers” to delay a hearing. The hearing could extend a court-ordered receivership of the plan, and allow customers to cancel their plans.
Many members are still paying for their plans, as Simple Health Plans’ third-party administrator charged customers 165,798 times between December 2018 and February of this year. The charges totaled roughly $14.6 million, according to the filing cited by the Sun Sentinel.
The FTC is requesting a ruling on the extension from the court without a hearing, according to the report.
More articles on payers:
Judge grants Aetna’s motion to dismiss disability benefits lawsuit
Christus hospitals out of network with Cigna
10 updates on Medicaid
At the Becker's 5th Annual Fall Payer Issues Roundtable, taking place November 17–19 in Chicago, payer executives and healthcare leaders will come together to discuss value-based care, regulatory changes, cost management strategies and innovations shaping the future of payer-provider collaboration. Apply for complimentary registration now.
