FTC: Florida company made $100M selling fake insurance

A federal judge has temporarily shut down Miami-based Simple Health Plans at the request of the Federal Trade Commission.

In a federal complaint against Simple Health Plans, the company's owner and five other entities, the FTC alleges Simple Health Plans collected more than $100 million by selling worthless health plans to thousands of people. The company allegedly misled consumers to think they were buying comprehensive "PPO" health insurance plans when they were actually purchasing plans that provided no coverage for pre-existing conditions or prescription medications.

Many of the people who purchased plans from Simple Health Plans are facing hefty medical bills for expenses they assumed would be covered by their health insurance plan. In addition, because the limited health plans do not qualify as health insurance under the ACA, some people were subject to a fee imposed on those who can afford to buy health insurance but choose not to.

The FTC is seeking to permanently shut down Simple Health Plans and to have the company return money to consumers.

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