FTC shuts down alleged health care scammers


FTC / Federal Trade CommissionA company and its subsidiaries used radio and TV to prey on individuals who lacked health insurance by misrepresenting what they were actually selling. The marketing effort also made heavy use of telemarketing, and in fact was labeled by FTC as a telemarketing scam.

The company is Health Care One, which purported to be selling government-endorsed health insurance that offered discounts to buyers and was widely accepted in the medical community. According to the FTC, in actuality it was none of the above – not even insurance.

The FTC said, “The Health Care One companies touted their services in television commercials and radio ads. They promised “100% satisfaction” and a money-back guarantee.”

“However, the FTC alleged that Health Care One’s discount plans were not insurance, were not widely accepted by healthcare providers, and did not provide the promised healthcare savings to consumers.

“According to the FTC’s complaint, the companies did not inform consumers that their program was not health insurance until after consumers signed up for the program and paid hundreds of dollars in fees. Consumers who subsequently tried to cancel their enrollment found that the Health Care One companies made it difficult or impossible to obtain refunds.”

In the effort to obtain restitution for the firm’s victims, the FTC is confiscating “an Aston Martin, a Maserati, a yacht, and two motorcycles,” to sell and help make good on the company’s “ill-gotten gains.”