Settlement will provide $515,000 in Consumer Relief
BOSTON (WWLP) – Health Plan Intermediaries Holdings, LLC (HPIH) d/b/a Health Insurance Innovations, has agreed to pay $625,000 as a settlement to allegations of deceptive and unlawful practices.
According to a statement released by the Attorney General’s Office, the Florida-based company used illegal practices to sell health plans to Massachusetts consumers.
“Massachusetts has strict regulations regarding the marketing and sale of health insurance for a reason: to prevent companies like this one from taking advantage of people regarding something as serious and essential as healthcare.” said AG Healey. “We took action against this company for engaging in deceptive practices in violation of these regulations and secured monetary relief for harmed consumers.”
The aforementioned company allegedly sold health insurance plans that were not authorized for sale, claimed that said plans covered services that it did not, describing limited health insurance as comprehensive, and passing off coverage limitations as positives, rather than negatives.
As part of the conditions from the judgement, HPIH is required to pay $515,000 for consumer relief, $100,000 in civil penalties to the Commonwealth and $10,000 for costs of the investigation. The company is also banned from selling non-Medicare related health plans in the Commonwealth for one year.
The AG’s Office has taken action against other insurance companies for related and similar issues regarding health plans including UnitedHealth insurance companies and United Life Insurance Company according to a statement from the Attorney General’s Office. This case was handled by Assistant Attorney General Emiliano Mazlen, with assistance from Division Chief Eric Gold of AG Healey’s Health Care Division, and Anthony Crespi of AG Healey’s Civil Investigations Division.