According to the FTC, Simple Health Plans and its subsidiaries collected more than $100 million through deceptive marketing and sales practices that left many people stuck with thousands in unpaid medical costs.
By KEVIN TRUONG / MedCity News

Hollywood, Florida-based Simple Health Plans has been shut down by a federal judge due to allegations from the Federal Trade Commission that the company was selling junk insurance under the guise of providing comprehensive coverage to patients.

According to an announcement from the FTC, Simple Health Plans and its subsidiaries collected more than $100 million through deceptive marketing and sales practices that left many people stuck with thousands in unpaid medical costs.

While the company portrayed its coverage as comprehensive, customers reported paying as much as $500 a month for extremely limited benefit programs that “effectively left consumers uninsured,” according to the FTC.

The federal court order is only temporary, but the FTC is seeking to permanently shut down the company’s operations and return money to customers.