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Business ProfileforBlue Lantern Health
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On August 8, 2022, the Federal Trade Commission is taking action against healthcare company Benefytt Technologies Inc, formerly known as Health Insurance Innovations, Inc., its subsidiaries, and former CEO Gavin Southwell, and former vice president of sales Amy Brady, for the following alleged violations:
Count I: Misrepresentations Regarding the Features of Benefytt Products
Count II: Misrepresentations Regarding Charges for Benefytt Products
Count III: Unauthorized Charges
Count IV: Deceptive Telemarketing Acts and Practices in Violation of the TSR: Product Features
Count V: Deceptive Telemarketing Acts and Practices in Violation of the TSR: Product Charges
Count VI: Assisting and Facilitating Violations of the TSR: Deception
Count VII: Abusive Telemarketing Acts and Practices in Violation of the TSR: Failure to Obtain Express, Informed Consent
Count VIII: Abusive Telemarketing Acts and Practices in Violation of the TSR: Initiation of Calls to Numbers on the National Do Not Call Registry
Count IX: Abusive Telemarketing Acts and Practices in Violation of the TSR: Initiation of Unlawful Prerecorded Messages
Count X: Assisting and Facilitating Violations of the TSR: National Do Not Call Registry and Prerecorded Messages
Count XI: Failure to Disclose All Material Terms in Violation of ROSCA
Count XII: Failure to Obtain Consumers' Express Informed Consent in Violation of ROSCA
Count XIII: Failure to Provide a Simple Cancellation Mechanism in Violation of ROSCA
Plaintiff requests that the Court:
A. Enter judgment against Defendants and in favor of Plaintiff for each violation alleged in this complaint;
B. Enter a permanent injunction to prevent future violations of the FTC Act, the TSR, and ROSCA by Defendants;
C. Award monetary and other relief within the Court's power to grant; and
D. Award any additional relief as the Court determines to be just and proper.
On March 14, 2024, Benefytt agreed to a settlement that required the company to pay $100 million to provide refunds and prohibited the company from lying about its products or charging illegal junk fees. Separate orders permanently banned Benefytt’s former CEO and a former vice president of sales from selling or marketing any healthcare-related product, and the former vice president was also banned from telemarketing.
The FTC is sending checks to 463,629 consumers. Recipients should cash their checks within 90 days, as indicated on the check. Consumers who have questions about their payment should contact the refund administrator, Epiq Systems, at 888-574-3126 or visit the FTC website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.
For more information about this case please contact The Federal Trade Commission (312) 960-5634 or www.ftc.gov
(Case 8:22-cv-01794, U.S. District Court for the Middle District of Florida)
Benefytt and its agents have misrepresented the features of their products during their sales pitch, falsely indicating to consumers that their products are actually ACA-qualified plans, or provide coverage equivalent to comprehensive, ACA-qualified plans at a lower cost. Defendants have also often added fees for items that consumers do not want or agree to purchase, and continued to bill consumers for products after they request cancellation. Many consumers learn the truth about Benefytt's products only when they need the benefits Defendants promised. In some instances, for example, consumers try to schedule an appointment with a doctor or fill a prescription, only to find that the products Defendants sold them provide little or no coverage whatsoever. In other instances, consumers may incur hundreds or thousands of dollars in medical costs with the assumption they will be covered, only to later learn that the products they purchased from Defendants do not cover most or all of those costs.
In addition to the "core" products, Defendants also have sold and supported several products and services they have described as "supplemental" or "ancillary," including life and accident insurance, vision and dental discount plans, telemedicine, and fitness programs that feature exercise routines and daily health tips. The various products and services Defendants have sold and supported are
referred to collectively hereafter as "Benefytt Products." Defendants have sold and billed for many of their core and ancillary Benefytt Products with a negative option in which the consumer continues to pay a monthly fee to continue to receive the Benefytt Product unless they cancel. Third parties underwrite the insurance products that Benefytt sells and supports. Corporate Defendants are not insurers or insurance carriers, and they do not provide insurance coverage or assume any underwriting, insurance, or reimbursement risk in connection with any Benefytt Product. Benefytt also does not process, adjudicate, or pay insurance claims.
Benefytt Technologies, Inc. wholly owns Defendant Health Plan Intermediaries Holdings, LLC, as well as the various indirect subsidiary operating companies owned by Defendant Health Plan
Intermediaries Holdings, LLC, including HealthPocket, Inc., which also does business as AgileHealthlnsurance. Benefytt Technologies, Inc. has done business as Health Plan Intermediaries Holdings, LLC, Health Insurance Innovations, Inc., HealthPocket, Inc., and AgileHealthlnsurance, among other names. The Corporate Defendants have operated as a common enterprise while engaging in the deceptive and unfair acts and practices and other violations of law alleged below. The Corporate Defendants have conducted the business practices described below through interrelated companies, which have common ownership, officers, managers, and business functions. Benefytt Technologies and HPIH primarily operate out of the same location, hold themselves out as Benefytt, and have held themselves out as Health Insurance Innovations. Because these companies have operated as a common enterprise, each of them is liable for the acts and practices alleged.
Defendant Gavin D. Southwell joined Benefytt as a consultant in early 2016, and the company's then-CEO tasked him with coordinating the company's "compliance challenges" and "broader strategy" shortly thereafter. Prior to joining Benefytt, Southwell held multiple leadership positions in compliance and risk management. He served as Chief Risk Officer and then Chief Operations Officer
for a large independent global wholesale and reinsurance brokerage. Before that, he worked as a risk manager and served as Chief Risk Officer at another insurancerelated company. Southwell was named Benefytt' s President in July 2016, at which point he assumed responsibility for overseeing Benefytt' s sales and compliance departments. He added the title of CEO in November 2016. Southwell thereafter served as an officer or director of all three Corporate Defendants until he separated from the companies in approximately August 2021.
Defendant Amy E. Brady served as a Benefytt vice president and manager until approximately July 2021. Acting alone or in concert with others, she formulated, directed, controlled, had the authority to control, or participated in the acts and practices set forth in this Complaint.
In October 2018, the FTC sued one of Benefytt's largest third-party distributors, Simple Health Plans LLC ("Simple Health") and related companies, as well as Simple Health's President and Chief Executive Officer Steven Dorfman ("Dorfman"). See FTC v. Simple Health Plans LLC et al., 18-cv-62593-DPG (S.D. Fla.). The FTC alleged that Simple Health claimed to offer consumers comprehensive health insurance or its equivalent, but instead typically enrolled consumers in an assortment of lesser programs, including Defendants' limited benefit plans and medical discount memberships. In addition to the significant monthly fees they paid for Defendants' products, many Simple Health customers incurred substantial medical expenses under the mistaken belief that these expenses would be covered by the comprehensive health insurance they thought they had obtained from Simple Health.
On May 14, 2019, the court granted the FTC's motion for a preliminary injunction, finding it likely that the FTC would prevail on its claims against Simple Health and Dorfman. Specifically, the Court found that the record supported a finding that Simple Health "made a series of material misrepresentations that were likely to influence consumers' decisions to purchase" various health-related products, several of which Simple Health sold on Benefytt's behalf.
Additional business information
In 2016, BBB also started receiving complaints from customers alleging that the business misrepresented the insurance products being sold. Specifically, customers believed that when buying insurance from Health Insurance Innovations they would be exempt from the Affordable Care Act Uninsured Tax, but they were not and had to pay IRS penalties.
Health Insurance Innovations has met with and communicated with BBB on a regular basis regarding complaints that have been filed against its business. HII is adamant that it is not the business responsible with causing the issues leading to a significant number of the complaints that have been filed. The business has stated that the complaints should be filed against either (1) the agency that sold the policy or (2) the insurance carrier involved with the claims.
Health Insurance Innovations has informed BBB that its role with customers is to be a technology platform that acts as an interface for customers to communicate with their chose insurance carriers. HII has advised BBB that it is not the insurance agency that made the sales presentation to the customers, is not an insurance company, and does not have the authority or responsibility to administer, adjust or pay claims under the products it or its agents sell on behalf of insurance carriers.
In the event that a claim is inadvertently sent to HII, HII's process is to promptly forward it to the applicable insurance company or, if applicable, the claim is sent to the insurance company's designated third party claims administrator. In circumstances where a claim is inadvertently sent to HII, the company also advises policyholders to pursue their claims with the applicable insurance company or the applicable insurance company's designated third party claims administrator.
HII has also advised BBB of several actions it undertakes to help eliminate the causes of these complaints. Specifically, HII has in place, and continues to improve its verification process to make sure that customers purchasing products have a clear understanding of the applicable benefits and limitations. HII is continuing to bolster its customer service department to make sure that it can be as responsive as possible to the questions and concerns of its customers.
BBB recommends that if you have any complaints or concerns, please contact prior to contacting BBB.
At-a-glance
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Products & Services
Business Details
This is a multi-location business.
- Headquarters
- 3450 Buschwood Park Dr Ste 200, Tampa, FL 33618-4447
- BBB File Opened:
- 9/24/2009
- Years in Business:
- 21
- Business Started:
- 4/1/2003
- Business Incorporated:
- 4/1/2003
- Licensing Information:
- This business is in an industry that may require professional licensing, bonding or registration. BBB encourages you to check with the appropriate agency to be certain any requirements are currently being met.BBB records show a license number of P006287 for this business, issued by Department of Financial Services
These agencies may include:
Department of Financial Services
200 E Gaines St
Tallahassee FL 32399
BBB records show a license number of A145020 for this business, issued by Department of Financial ServicesThese agencies may include:
Department of Financial Services
200 E Gaines St
Tallahassee FL 32399
BBB records show a license number of L067197 for this business, issued by Department of Financial ServicesThese agencies may include:
Department of Financial Services
200 E Gaines St
Tallahassee FL 32399
BBB records show a license number of L092013 for this business, issued by Department of Financial ServicesThese agencies may include:
Department of Financial Services
200 E Gaines St
Tallahassee FL 32399
BBB records show a license number of L084099 for this business, issued by Department of Financial ServicesThese agencies may include:
Department of Financial Services
200 E Gaines St
Tallahassee FL 32399
BBB records show a license number of W107983 for this business, issued by Department of Financial ServicesThese agencies may include:
Department of Financial Services
200 E Gaines St
Tallahassee FL 32399
BBB records show a license number of L108536 for this business, issued by Department of Financial ServicesThese agencies may include:
Department of Financial Services
200 E Gaines St
Tallahassee FL 32399
BBB records show a license number of L102191 for this business, issued by Department of Financial ServicesThese agencies may include:
Department of Financial Services
200 E Gaines St
Tallahassee FL 32399
BBB records show a license number of L105367 for this business, issued by Department of Financial ServicesThese agencies may include:
Department of Financial Services
200 E Gaines St
Tallahassee FL 32399
As of September 2023, Health Plan Intermediaries Holdings, LLC, (DBA "Health Insurance Innovations"), 3450 Buschwood Park Dr., Ste. 201, Tampa, FL 33618, had its application for an EPBA license (in Wisconsin) denied. This action was taken based on allegations of having inadequate financial resources.
The Office of the Commissioner of Insurance (OCI) is responsible for administering and enforcing the insurance laws of Wisconsin. This includes monitoring the financial and marketing practices of individuals and companies. Each month, OCI publishes the administrative actions it has taken against these entities. The actions are issued by OCI when licensing applicants, or licensed individuals or companies have violated Wisconsin insurance statutes or regulations. In some cases, the individual or company denied the stated allegations but consented to the action taken. OCI strives to ensure fair and honest business practices to protect Wisconsin insurance consumers through this type of transparency. Copies of the administrative orders may be viewed online at ociaccess.oci.wi.gov/OrderInfo/OrdInfo.oci.
If you have a question or complaint regarding an insurance company or agent in Wisconsin you can use the OCI online complaint form (oci.wi.gov) or contact OCI at 1-800-236-8517.
- Type of Entity:
- Limited Liability Company (LLC)
- Alternate Business Name
- Health Insurance Innovations
- Health Plan Intermediaries, LLC
- HII
- Business Management
- Mr. Domenick DiCicco Jr., General Counsel
- Mr. Michael DeVries, Treasurer
- Mr. Jason Penny, Manager of Corporate Communications
- Mr. Todd Baxter, CEO
- Jennifer Hughes, Complaint Manager
- Contact Information
Principal
- Mr. Domenick DiCicco Jr., General Counsel
- Jennifer Hughes, Complaint Manager
Customer Contact
- Mr. Travis Conley, Chief Technology Officer
- Mr. Domenick DiCicco Jr., General Counsel
- Mr. Michael DeVries, Treasurer
- Mr. Jason Penny, Manager of Corporate Communications
- Mr. Todd Baxter, CEO
- Jennifer Hughes, Complaint Manager
- Additional Contact Information
Fax Numbers
- (877) 376-5832Primary Fax
Phone Numbers
- (844) 792-6985Other Phone
- (954) 606-9070Other Phone
- (877) 376-5832
Customer Complaints
35 Customer Complaints
Need to file a complaint? BBB is here to help. We'll guide you through the process. How BBB Processes Complaints and Reviews
File a ComplaintMost Recent Customer Complaint
03/28/2024
- Complaint Type:
- Sales and Advertising Issues
- Status:
- Unanswered
Customer Reviews
11 Customer Reviews
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Most Recent Customer Review
Rae
02/02/2023
Blue Lantern Health Response
02/06/2023
Customer Response
02/16/2023
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