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FTC gets ‘Trumpcare’ health plan shut down

A federal judge temporarily shut down a South Florida-based operation called Simple Health Plans that allegedly collected more than $100 million from tens of thousands of consumers for plans dubbed Trumpcare and simplemedicareplans.

The Federal Trade Commission alleged Simple Health Plans owner Steven Dorfman and five others misled consumers to think they were buying comprehensive insurance. Instead, the customers paid as much as $500 per month for what was actually a medical discount program or else an extremely limited indemnity program with a maximum benefit of $3,200 per year.

Most of the sales of the allegedly fraudulent plans occurred over the last three years.

Fraud experts and state regulators worry that health insurance scams will proliferate as the Trump administration promotes leaner, cheaper alternatives to comprehensive Affordable Care Act health plans, such as short-term plans and association health plans.

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Article source: https://www.modernhealthcare.com/article/20181106/NEWS/181109956