Arkansas Insurance Commissioner Allen Kerr today released the following statement regarding a Cease and Desist Order issued against Health Plan Intermediaries Holdings, LLC., dba Health Insurance Innovations , a Tampa, Florida-based company, over allegations the company has used fraudulent and dishonest practices in attempting to sell short-term health care plans to Arkansans, claiming the plans were compliant with the Affordable Care Act:
“The Arkansas Insurance Department takes very seriously its charge to protect Arkansas consumers from fraud. We will not allow unlicensed individuals to prey upon our neighbors with non-compliant health insurance plans under the promise of avoiding a tax penalty.”
The Cease and Desist Order requires HII and its affiliates to immediately stop the sale, solicitation, or advertising of any health plans or medical insurance using unlicensed agents, and stop intentionally misrepresenting the terms of an insurance contract or application for insurance. The order can be read here.
AID investigators engaged in a phone call with an HII employee who offered insurance plans, and provided price quotes for HII products, despite admitting he was not a licensed insurance agent. Additionally, several company representatives made misleading statements to investigators about two HII short-term health plans, “HealtheFlex” and “Principal Advantage Plan,” that they were ACA-compliant plans that would allow a consumer to avoid receiving a tax penalty.
Kerr added: “This is the first step in our investigation into the practices of Health Insurance Innovations in Arkansas. I strongly encourage anyone who has received a sales call from HII, or has purchased one of these plans, to contact the Insurance Department.”
Consumers can contact AID’s Consumer Services Division at: (800) 852-5494.
For more information on the Arkansas Insurance Department, please visit http://insurance.arkansas.gov.