Florida Company Sued Over Sales of Short-Term Health Plans

Controversy surrounds short-term healthcare policies.
June 12, 2019

One Ohio resident said she paid $240 a month for health insurance that she later learned didn’t cover her knee replacement. A Kansas resident said he paid premiums on a policy for two years, then found out his insurance would not cover surgery for a newly diagnosed cancer. The two are now among those suing the Florida company that sold them short-term health policies, saying they were misled. “This isn’t real insurance,” said Jason Kellogg, one of the lawyers representing the individuals in the Florida case.

There’s controversy surrounding short-term healthcare policies, and potential risks for insurance companies and agents who sell them. While supporters of short-term plans say they are an affordable option for those who can’t pay for the more robust coverage required under the Affordable Care Act (ACA), state regulators have been cracking down on agents who have allegedly misled customers about what such inexpensive plans cover, or more importantly, don’t cover. In Pennsylvania during the past two years, the state took action against seven agents for misrepresenting the plans they sold.

READ: Florida Company Sued Over Sales of Skimpy Health Plans

READ: Georgetown University Report on the Marketing of Short-Term Health Plans

While the Trump administration has loosened federal restrictions on short-term health plans, four states — California, Massachusetts, New Jersey and New York — have largely banned the sale of these products, and others have restricted sales of such plans.

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