Florida insurer hit with lawsuit over skimpy plans

Tampa, Fla.-based Health Insurance Innovations faces a class-action lawsuit accusing the health plan provider of misleading customers into thinking they purchased ACA-compliant coverage, according to The New York Times.

In the lawsuit, filed in federal court, consumers allege they thought they were buying a comprehensive health plan from Health Insurance Innovations. However, they were sold far less coverage, with some plaintiffs owing tens of thousands of dollars in medical bills for treatment they believed would be paid for by Health Insurance Innovations, the lawsuit claims.

The complaint also accuses Health Insurance Innovations of partaking in a $150 million fraud scheme run by Simple Health Plans. The Federal Trade Commission recently shut down the insurer.

Health Insurance Innovations told The New York Times it was not involved in Simple Health Plans' operations. Health Insurance Innovations did use Simple Health Plans brokers to sell policies and retrieve premium payments, but the insurer said it made brokers "provide clear disclosure of the information necessary for consumers to understand the policies they purchase."

Read more here.

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