NCL commends FTC for crackdown on ‘shoddy’ healthcare plans

November 6, 2018

Media contact: National Consumers League – Carol McKay, carolm@nclnet.org, (412) 945-3242 or Taun Sterling, tauns@nclnet.org, (202) 207-2832

Washington, DC—The National Consumers League (NCL) has issued praise for the Federal Trade Commission’s (FTC) recent action against Simple Health Plans LLC, a Hollywood, FL-based company duping consumers into purchasing shoddy healthcare plans purporting to be Affordable Care Act-compliant. At the request of the FTC, a federal judge temporarily shut down the company that allegedly bilked consumers out of more than $100 million by selling worthless plans and simultaneously leaving victims uninsured.

In August, NCL expressed concern that the Short-Term Limited Duration Insurance (STLDI) Plan rule would allow for the sale of short-term health insurance plans that do not comply with the requirements of the Affordable Care Act—and allow insurers to offer junk insurance policies that fail to meet consumers’ healthcare needs. 

The following statement can be attributed to NCL Executive Director Sally Greenberg:

“We commend the FTC for its swift action against Simple Health Plans and the con artists disguised as health care company executives. This company has gone further than just preying on consumers’ finances — they’ve misled consumers into believing they were buying legitimate insurance coverage. Instead, they’ve left their victims without basic coverage for  doctors’ visits and pre-existing conditions, and many with mounting debt. We appreciate the FTC’s efforts to protect consumers from false advertising and unscrupulous actors in this industry and hope justice is served for these fraudsters and others who prey on vulnerable healthcare consumers.”