FTC Obtains $195 Million Judgment, Permanent Ban on Telemarketing and Selling Healthcare Products Against Simple Health Over Charges It Sold Sham Health Insurance

Summary

The Federal Trade Commission (FTC) has obtained a $195 million judgment against Simple Health Plans LLC and its CEO Steven J. Dorfman for duping consumers into signing up for sham health care plans that did not deliver the promised coverage and benefits. The FTC charges that Simple Health misled consumers into thinking they were buying comprehensive health insurance, but in reality, most consumers who enrolled received limited or no coverage, resulting in thousands of dollars in uncovered medical bills. The court has banned the company and its CEO from telemarketing and selling healthcare products, and ordered the company to turn over the money it bilked from consumers.