Health Insurance Innovations (HIIQ) Ends Relationship With Simple Health Plans

On November 2, 2018, the FTC put out a press release regarding Simple Health Plans LLC, which announced that, at its request “a federal judge temporarily shut down a Florida-based operation that allegedly collected more than $100 million by preying on Americans in search of health insurance, selling these consumers worthless plans that left tens of thousands of people uninsured.”

A complaint filed in federal court against Simple Health and its owner alleged that they falsely led people to believe they were buying comprehensive health insurance, when they were really buying medical discount and limited benefit plans that didn’t qualify as health insurance and didn’t deliver the benefits promised.

Many of the people who bought these plans incurred significant medical bills and also had to pay a penalty for not having insurance.

The FTC is seeking to permanently stop Simple Health’s practices and return money to the consumers.

If you purchased a Simple Health Plan policy, please contact us to discuss your legal rights.

Health Insurance Innovations (HIIQ)

The same day as the FTC release, Health Insurance Innovations (HIIQ), a publicly-traded company that sells health insurance and supplemental plans, put out a press release stating that it had terminated its relationship with Simple Health as soon as it was made aware of the action by the FTC.

Health Insurance Innovations used Simple Health to sell its plans, and Simple Health is alleged to have used deceptive tactics to sell Health Insurance Innovations’ policies.

A class action lawsuit filed against Health Insurance Innovations on behalf investors concerning potential violations of state and federal laws by the company and its officers alleges that the company didn’t disclose that a significant amount of the company’s revenue came from third parties or that regulatory inspection of the third parties would materially impact the company’s operations.

Investors who purchased Health Insurance Innovations between February 28, 2018 and November 27, 2018 may be eligible to participate in the class action.

Health Insurance Innovations raised more than $65 million with its public offering, which used underwriters Citigroup Global Markets, Credit Suisse Securities USA, BofA Merrill Lynch, and Raymond James Financial.

If you were a Health Insurance Innovations shareholder and want to learn more about your legal rights, contact the Silver Law Group.

Silver Law Group represents the interests of investors who have been the victims of investment fraud. Our attorneys represent investors in class actions against issuers in state or federal court and investors in securities arbitration claims against Wall Street firms for stockbroker misconduct. Scott Silver is the chairman of the Securities and Financial Fraud Group of the American Association of Justice and represents investors nationwide in securities investment fraud cases. Please contact Scott Silver of the Silver Law Group for a free consultation at ssilver@silverlaw.com or toll free at (800) 975-4345.