FTC Returns More than $1.1 Million to Victims of Operation Involving Allegedly Bogus Health Insurance

For Release

The Federal Trade Commission is mailing 50,395 refund checks totaling more than $1.1 million to consumers who were victimized by a telemarketing operation that allegedly tricked them into buying worthless medical discount plans.

In June 2012, the FTC announced that it halted the scam. Under several settlement orders, Health Care One, Americans4Healthcare Inc., Elite Business Solutions, Inc., Mile High Enterprise Inc., and their principals were barred from having any role in a healthcare-related enterprise and from selling healthcare-related goods or services.             

The checks are being mailed by an administrator working for the FTC, and will expire 60 days after they are issued. Consumers with questions about the Health Care One refund checks should call the refund administrator at 1-877-690-7103.  For general questions about the FTC’s redress program, visit www.FTC.gov/refunds.

Health Care One and its affiliates allegedly deceived consumers by marketing medical discount plans as government-endorsed health insurance and claiming they would deliver substantial savings on consumers' healthcare costs. According to the FTC's complaint, filed in the Central District of California, the companies also falsely claimed that their program was widely accepted by healthcare providers in consumers' local communities. The Health Care One companies touted their services in television commercials and radio ads. They promised “100% satisfaction” and a money-back guarantee.

Consumers should carefully evaluate claims about health insurance.  For more information see:  Discount Plan or Health Insurance?

The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC's online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics.  Like the FTC on Facebook, follow us on Twitter, and subscribe to press releases for the latest FTC news and resources.

Contact Information

MEDIA CONTACT:
Jay Mayfield
Office of Public Affairs

202-326-2181
STAFF CONTACT:
Thomas J. Syta
FTC Western Region - Los Angeles
310-824-4343