Two insurance companies were ordered to pay restitution and change their marketing methods after “deceptively” selling discount health plans as health insurance to Massachusetts consumers in a $2.4 million civil judgement.
Martha Coakley
The complaint accused Consumer Health Benefit Association (CHBA), National Benefits Consultants (NBC), Guarantee Trust Life Insurance Co. and Vantage America Solutions of “unfairly and deceptively” selling a discount health plan to consumers using multiple tactics. The defendants falsely represented the discount health plan as health insurance, and as such that could fulfill the Massachusetts mandate on health insurance, according to Massachusetts Attorney General Martha Coakley.
CHBA and NBC must pay $586,960.95 in restitution to Massachusetts consumers, $1,780,000 in civil penalties to the Commonwealth and $99,000 in attorneys’ fees.
The judgment, filed in Suffolk Superior Court in Massachusetts, prohibits the defendants from marketing or selling as health insurance a product that is not a health benefit plan; and violating regulations issued by the Attorney General governing discount health plans and discount health plan organizations. It also prohibits defendants from falsely selling a discount health plan or insurance as fulfillment of the Massachusetts health insurance coverage mandate.
Coconut Creek, Fla.-based NBC and CHBA, a membership association under NBC, filed for bankruptcy in Florida, which will affect the availability of funds to pay the judgment, the attorney general’s office reported.
The phone number for NBC was no longer in service.
The attorney general’s lawsuit is ongoing against Guarantee Trust Life Insurance Co. and Vantage America Solutions, both based in Glenview, Ill.
Companies bankrupt after ‘deceptively’ selling discount health plans via IFAwebnews .