Limited Benefit Indemnity Healthcare Plan Class Action Lawsuit Investigation – Top Class Actions
Limited Benefit Indemnity Healthcare Plans: Who’s Affected?
Do you have a limited benefit indemnity health plan?
Were you shocked to learn that much of your healthcare expenses aren’t covered by your plan?
In late 2021, Health Insurance Innovations agreed to pay $27.5 million to resolve claims that it misrepresented its limited benefit indemnity plan as comprehensive medical insurance. As a result of these misrepresentations, patients were allegedly left with thousands in unexpected medical expenses not covered by insurance.
Unfortunately, Health Insurance Innovations may not be the only company to take advantage of customers through limited indemnity plans.
Trendy health insurance companies may make false promises to consumers about comprehensive coverage at bargain premium rates. In reality, these plans aren’t regulated by the Affordable Care Act and could force patients to foot the bill for their healthcare costs.
Do You Qualify?
If you have a limited benefit indemnity health plan, you could qualify for a FREE class action lawsuit investigation.
Fill out the form on this page for more information.
Overview: Limited Benefit Indemnity Plan
A limited benefit plan is a type of medical insurance plan with tightly restricted benefits but lower premiums when compared with major medical insurance plans. Unlike traditional health insurance plans, limited benefit plans do not offer broad coverage of medical expenses and instead offer only supplemental or limited coverage.
Indemnity plans, sometimes called fee-for-service, are a type of limited benefit plan in which insurers cover only part of a medical bill. Insured patients are still responsible for a monthly premium, their deductible, and whatever portion of the medical bill their indemnity plan doesn’t cover.
Unfortunately, these plans are not regulated by the Affordable Care Act—a federal law that prohibits discrimination based on pre-existing conditions and protects insured individuals in other ways. This lack of regulation may add to consumer woes when it comes to limited benefit indemnity plans.
Industry experts warn that limited benefit indemnity plans shouldn’t be treated as major medical health insurance and should instead be used as supplemental insurance to fill in the gaps of primary coverage.
Unfortunately, limited benefit plan providers may mislead customers into relying solely on indemnity plans—resulting in shocking bills for tests, medications, and doctors visits.
Limited Benefit Plan Class Action Lawsuits
In recent years, frustrated customers lodged a class action lawsuit against limited benefit indemnity plan providers, claiming that the companies intentionally misrepresented indemnity plans as an alternative to health insurance. As a result, insured patients were allegedly shocked to find they owed thousands of dollars in medical bills due to spotty coverage.
Patients filed the class action lawsuit against now-defunct insurance provider Health Insurance Innovations.
According to plaintiffs in the case, the company scammed over 200,000 consumers into believing that its Simple Health and Nationwide Health plans provided comprehensive healthcare coverage. In reality, these plans were allegedly limited benefit indemnity programs that covered only a small amount of healthcare costs.
The limited benefit plan class action lawsuit claims that patients such as the plaintiffs were duped into purchasing these plans based on false promises. Instead of receiving comprehensive coverage, patients were allegedly left with thousands of dollars in uncovered medical expenses.
In December 2021, Health Insurance Innovations agreed to pay $27.5 million to resolve claims that its Simple Health and Nationwide Health plans were intentionally misrepresented as comprehensive medical insurance. The settlement allowed patients to recover a cash payment based on their experiences.
Join a Limited Indemnity Benefit Insurance Plan Class Action Lawsuit Investigation
Other companies may be duping consumers into purchasing limited indemnity plans. If you bought a health plan you thought was insurance, but turned out to provide only limited coverage, you may qualify for a class action lawsuit investigation into these companies to pursue compensation.
Fill out the form on this page!
