‘Junk Insurance’ Called a Health Care Scam
A predatory insurance group deceived thousands of consumers by selling “junk insurance” plans with low caps and extremely limited benefits, advertising it as comprehensive medical insurance, consumers claim in a class action.
Lead plaintiff Jacquelyn Weaver sued The National Better Living Association, Allied Health Benefits, The United States Life Insurance Company in the City of New York, Albert Cormier Solutions and Health Lead Systems, in Federal Court.
Weaver claims the companies targeted consumers who couldn’t afford employer-sponsored plans or did not qualify for them, and persuaded them to buy worthless insurance policies and pay “membership” fees to the association.
“This action challenges a deceptive and predatory ‘association plan’ insurance scam designed to enrich defendants at the expense of vulnerable consumers seeking individual health insurance,” the lawsuit states. “The scheme is carried out by setting up a dubious ‘group association,’ which is nothing more than a subterfuge to evade regulatory oversight. Then, as part of the association’s purported ‘group benefit,’ the defendants deceptively market and sell certain worthless, junk insurance under the auspices of comprehensive, major medical insurance to consumers who cannot afford or are ineligible for credible coverage.
More: Courthouse News Service