Law Office of Jordan Lewis, Pennsylvania
Jordan Lewis, Pennsylvania
Licensed in Florida
Office location: Fort Lauderdale, FL 33334
Limited benefit healthcare plans: who is affected?
Do you have a limited benefit health insurance plan?
Were you shocked to learn that a large portion of your healthcare expenses are not covered by your plan?
End of 2021, Health Insurance Innovations agreed to pay $27.5 million to resolve claims that it misrepresented its limited-benefit compensation plan as comprehensive medical insurance. As a result of these misrepresentations, patients would have ended up with thousands of unforeseen medical expenses not covered by insurance.
Unfortunately, Health Insurance Innovations may not be the only company taking advantage of customers through limited compensation plans.
Fashionable health insurance companies can make false promises to consumers about comprehensive coverage at cheap premium rates. In reality, these plans are not regulated by the Affordable Care Act and could leave patients footing the bill for their health care costs.
Are you eligible?
If you have a limited benefit health insurance plan, you may be eligible for a FREE class action investigation.
Fill out the form on this page for more information.
Overview: Limited Benefit Compensation Plan
A limited benefit plan is a type of medical insurance plan with strictly limited benefits but lower premiums compared to major medical insurance plans. Unlike traditional health insurance plans, limited-benefit plans do not provide broad medical expense coverage and instead provide only supplemental or limited coverage.
Compensation plans, sometimes called fee-for-service, are a type of limited-benefit plan in which insurers only cover part of a medical bill. Insured patients are still responsible for a monthly premium, their deductible, and the portion of the medical bill that their compensation plan does not cover.
Unfortunately, these plans aren’t regulated by the Affordable Care Act, a federal law that prohibits discrimination based on pre-existing conditions and protects policyholders in other ways. This lack of regulation can add to consumer woes when it comes to limited benefit compensation plans.
Industry specialists caution that limited benefit indemnity plans should not be treated as major health medical insurance and should instead be used as supplemental insurance to fill gaps in primary coverage.
Unfortunately, limited-benefit plan providers can trick clients into relying solely on compensation plans, resulting in shocking bills for tests, medications, and doctor visits.
Limited Benefit Class Actions
In recent years, frustrated customers have filed a class action lawsuit against providers of limited-benefit compensation plans, claiming the companies intentionally misrepresented compensation plans as an alternative to health insurance. As a result, insured patients would have been shocked to find they owed thousands of dollars in medical bills due to patchy coverage.
Patients deposited the class action against the now defunct insurance provider Health Insurance Innovations.
According to the plaintiffs in the case, the company defrauded more than 200,000 consumers into believing that its Simple Health and Nationwide Health plans offered comprehensive healthcare coverage. In reality, these schemes were allegedly limited-benefit compensation programs that covered only a small portion of healthcare costs.
The limited-benefit plan class action claims that patients like the plaintiffs were tricked into purchasing these plans on the basis of false promises. Instead of having full coverage, patients would have been left with thousands of dollars in uncovered medical expenses.
In December 2021, Health Insurance Innovations agreed to pay $27.5 million to resolve claims that its Simple Health and Nationwide Health plans were intentionally misrepresented as comprehensive medical insurance. The settlement allowed patients to recoup a cash payment based on their experiences.
Join a Class Action Investigation under a Limited Indemnity Benefits Insurance Plan
Other companies can trick consumers into buying limited compensation plans. If you purchased a health plan that you thought was insurance, but turned out to offer only limited coverage, you may be eligible for a class action investigation against those companies for compensation.
Fill out the form on this page!