The FTC has obtained a $195 million judgment in a Florida federal court against Simple Health Plans and its CEO Steven Dorfman for selling and enrolling members in "sham" health plans that "effectively left consumers uninsured and exposed to limitless medical expenses."
The court has also banned Mr. Dorfman, Simple Health and five related corporate entities (Health Benefits One, Health Center Management, Innovative Customer Care, Simple Insurance Leads, and Senior Benefits One) from marketing or selling any healthcare products in the future, according to a Feb 9 news release.
In 2018, the FTC accused Simple Health 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. A federal judge temporarily shut down the company at the FTC's request, claiming the insurer made at least $150 million selling fake policies.
The court has now ordered that all of Simple Health's assets be liquidated and all proceeds be turned over to the FTC to provide refunds to consumers. The defendants are also banned from collecting any money for any healthcare product they previously sold, and they must destroy any personal information they collected about their members.