Federal Trade Commission Freezes Health Insurance Scam

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The FTC alleges the health insurance’s promoters unlawfully used different websites to entrap consumers looking for coverage. Consumers were told that for $500 or less a month; they were purchasing comprehensive health insurance that would cover pre-existing conditions, primary and specialty care treatment, emergency care, surgical procedures and medical testing. None of this was true. Instead, consumers discovered they paid for a medical discount program (not health insurance) and were left uninsured with high medical bills.

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“The plans defendants were selling are not health insurance and they aren’t a substitute for health insurance. Get the details in writing and take your time before signing up for any of these plans,” says Andrew Smith, director of the FTC’s Bureau of Consumer Protection.

According to the FTC, Simple Health used a series of websites that featured logos of AARP and other well-known insurance companies such as Blue Cross Blue Shield despite having no affiliation with either entity.