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Federal judge shuts down Florida company that collected more than $100M for sham health plans

November 02, 2018 / Evan Sweeney

A federal court has temporarily shut down a sham health insurer that collected more than $100 million from consumers and left tens of thousands of people uninsured. The South Florida company called Simple Health Plans LLC sold “worthless” plans to consumers, according to the Federal Trade Commission (FTC), which asked a U.S. District Court to halt the company’s operations while it seeks to permanently shut down the company. The agency said many consumers who purchased the sham coverage were left with substantial medical expenses and thousands of dollars in unpaid bills. In a complaint (PDF) filed by the FTC, prosecutors alleged Simple Health Plans owner Steven J. Dorfman, who operated four other companies, preyed on consumers seeking health insurance beginning in 2013 through a network of lead-generation websites touting comprehensive, ACA-compliant coverage. In advertising materials, the company falsely claimed to be affiliated with AARP and the Blue Cross Blue Shiel...