Insurance Commissioner Allen Kerr issued a cease and desist order against Tampa, Fla.-based Health Plan Intermediaries Holdings LLC, dba Health Insurance Innovations (HII), alleging the company is using fraudulent and dishonest practices in an attempt to sell short-term healthcare plans in Arkansas.
HII 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, company representatives made misleading statements to investigators about two HII short-term health plans, “HealtheFlex” and “Principal Advantage Plan.” Investigators were told the plans were ACA-compliant and would allow a consumer to avoid 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 AID’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 ACA, despite their promises.
The open enrollment period for the 2016 ACA health insurance marketplace ended Jan. 31. The commissioner said there is no special “state enrollment period” for individual health insurance. Insurance plans offered through an “enrollment period” outside of open enrollment are not ACA-compliant.
Topics Florida
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