Recovering from a Health Care Hustle

The FTC announced today that it will mail more than $700,000 in refunds to people who thought they paid for medical insurance but were sold worthless medical discount plans instead.

The FTC and the Tennessee Attorney General charged that United States Benefits, LLC, claimed to offer comprehensive health insurance coverage with no deductible and no waiting period. But customers soon discovered that they had bought membership in a “benefits association,” which offered health care discounts with little or no value.

There’s a big difference between discount plans and health insurance. If you’re in the market for health insurance, do your best to confirm that’s what you’re buying. Otherwise, you could be on the hook for big medical bills without a way to pay them.

Any legitimate health insurance plan should be willing to send you written detailed information before you make a decision or spend any money.

Regardless of what you’re buying, it’s a good idea to check out what other people have to say about a company before you agree to give it your business. Enter the name of the company and the word “complaints” into a search engine and read about other people’s experiences. 

Finally, ask your state insurance commissioner’s office what information they can give you about the company. A little research may save you a lot of time and money down the road.

Leave a Comment

Comment Policy

This is a moderated blog; we review all comments before they are posted.  We expect participants to treat each other and the bloggers with respect.  We will not post comments that do not comply with our comment policy.  If a submitted comment includes a link to a commercial website, we will delete the link and post the comment. We won't edit comments except to remove links.

We won’t post:

  • spam or off-topic comments
  • comments that contain vulgar language, personal attacks, or offensive terms that target specific groups
  • sales pitches or promotions
  • comments that contain clearly misleading or false information
  • comments that contain personal information, like home addresses

Comments submitted to this blog become part of the public domain. To protect your privacy and the privacy of others, please do not include personal information. Also, do not use this blog to report fraud; instead, file a complaint.

If you have questions about the commenting policy, please contact us.

Read Our Privacy Act Statement

It is your choice whether to submit a comment. If you do, you must create a
user name, or we will not post your comment. The Federal Trade Commission Act
authorizes this information collection for purposes of managing online
comments. Comments and user names are part of the Federal Trade Commission’s
(FTC) public records system, and user names also are part of the FTC’s computer
user records system. We may routinely use these records as described in the
FTC’s Privacy Act system notices. For more information on how the FTC handles
information that we collect, please read our privacy policy.