Comment on False offers of cash subsidies used to ‘capture’ health insurance customers, lawsuit alleges

A health insurance operation based in Broward County used internet ads that falsely promised cash subsidies to sign up clients across the country and replace their agents, a lawsuit contends. The scheme was carried out by Enhance Health LLC, TrueCoverage LLC, Speridian Technologies LLC, Number One Prospecting LLC and two individuals who ran it, according to a lawsuit that seeks class action status. The suit claims the defendants operate a criminal enterprise that targets low-income consumers who are eligible for coverage under the Affordable Care Act. It accuses the defendants of violating the federal Racketeering Influenced and Corrupt Organizations (RICO) Act, as well as federal laws meant to prevent unauthorized entities from accessing ACA plans. Internet ads drew customers into providing personal information that health insurance agencies used to change agents of record and enroll consumers into policies that were often inadequate or subjected clients to hefty tax penalties, according to a federal lawsuit filed by agents and consumers.