Arkansas Orders Florida Health Plan to Stop Selling in State

March 28, 2016

Insurance Commissioner Allen Kerr has issued a cease and desist order against Health Plan Intermediaries Holdings LLC., dba Health Insurance Innovations (HII), a Tampa, Florida-based company, alleging the company has used fraudulent and dishonest practices in attempting to sell short-term health care plans in Arkansas.

The company claims the plans are compliant with the Affordable Care Act when they are not, according to the Arkansas Insurance Department.

In a phone call with AID investigators, an HII employee offered insurance plans, and provided price quotes for HII products, despite admitting he was not a licensed insurance agent.

Additionally, several company representatives made misleading statements to investigators about two HII short-term health plans, “HealtheFlex” and “Principal Advantage Plan,” that they were ACA-compliant plans that would allow a consumer to avoid receiving a tax penalty, the department said.

The commissioner’s order requires HII and its affiliates to immediately stop the sale, solicitation, or advertising of any health plans or medical insurance using unlicensed agents, and stop intentionally misrepresenting the terms of an insurance contract or application for insurance.

“This is the first step in our investigation into the practices of Health Insurance Innovations in Arkansas. I strongly encourage anyone who has received a sales call from HII, or has purchased one of these plans, to contact the Insurance Department,” Kerr said in the department’s announcement.

In a separate release, Kerr warned Arkansans not to fall prey to high-pressure telemarketers selling short-term health insurance products that are not compliant with the Affordable Care Act, despite their promises.

The open enrollment period for the 2016 health insurance marketplace under the Affordable Care Act ended Jan. 31. The commissioner reminded consumers that there is no special “state enrollment period” for individual health insurance. Anyone offering insurance plans through an “enrollment period” outside of open enrollment is not selling an ACA-compliant policy.

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