New Class Action Targets National Fraudulent Healthcare Insurance Scheme
Lawsuit Filed on Behalf of Victims of the Simple Health Insurance Scam
MIAMI June 12, 2019 — As health insurance fraud penetrates America’s healthcare industry to target vulnerable consumers, Miami-based law firm Levine Kellogg Lehman Schneider + Grossman (LKLSG) and Atlanta-based The Doss Firm filed a class action complaint against Health Insurance Innovations (HIIQ), Inc. and Health Plan Intermediaries Holdings, LLC (HPIH) for their role in the Simple Health Plans fraudulent insurance scheme.
The lawsuit alleges HIIQ and HPIH directed, aided and abetted the $150 million fraud perpetrated by Simple Health Plans, a South Florida company that was shut down in October 2018 by the Federal Trade Commission. The lawsuit alleges that HIIQ took part in defrauding hundreds of thousands of vulnerable consumers nationwide, leading them to believe that their limited benefit indemnity plans and medical discount plans were major medical insurance that met the requirements of the Affordable Care Act.
“The scheme carried out by HIIQ and HPIH through Simple Health Plans created devastating consequences for victims nationwide,” said Jason Kellogg, Partner at LKLSG. “These folks thought they were doing the right thing in purchasing health insurance. Instead, they were left mostly uninsured.”
Co-Lead Plaintiff Chris Mitchell of Kansas was left with bills exceeding $40,000 after having surgery to treat an aggressive form of cancer. Co-Lead Plaintiff Elizabeth Belin of Ohio was billed more than $48,000 in medical expenses because her limited benefit indemnity plan, which she was told was a PPO, did not cover the surgery.
Simple Health was one of the largest brokers for HIIQ, a publicly traded distributor of health insurance and supplemental plans that financed, sold plans through, acted as the third-party administrator for, and provided customer service for Simple Health.
The Federal Trade Commission warned that thousands of potentially unaware victims continue to be charged by HIIQ for plans purchased through Simple Health.
“This scheme victimized the most vulnerable patients across the country,” said attorney Jason Doss, owner of the Doss Law Firm. “The plaintiffs are the consumers that the Affordable Care Act was designed to protect.”
For more information, you can call (855) 534-4581
Complaint below:Belin Complaint