Massachusetts Attorney General Andrea Joy Campbell has settled with Adroit Health Group for $5 million over allegations the Texas-based insurer misled thousands of consumers about the health coverage it sold them beginning in 2016.
The attorney general’s office alleged that Adroit deceptively marketed its products as comprehensive insurance plans that met federal and state coverage requirements when they did not, according to an April 29 news release. The state also alleged the company billed consumers without authorization, denied refunds to customers who tried to cancel, and withheld information about the nature of the plans it was selling, including discount plans and specified disease policies. The company also operated under multiple business names, including “Strata Health Group” and “A1.”
A large portion of the $5 million will be distributed as restitution to Massachusetts consumers who purchased plans through Adroit. Adroit is also permanently banned from selling, offering, or administering any health plan or non-insurance health program to state residents.
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