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Victims of bogus health-insurance scam to receive checks

Posted by: Jane Friedmann under Advertising claims, Businesses in hot water, Buyer beware, Scams, Whistleblower Updated: May 28, 2013 - 10:45 AM
Victims of a telemarketing operation that sold medical discount plans by deceptively calling them health insurance will soon receive refund checks from the Federal Trade Commission, the FTC said last week.
 
As part of a settlement between the telemarketer, United States Benefits, LLC, and the Federal Trade Commission and Tennessee Attorney General, USB agreed to pay $700,000 to reimburse 412 customers.
 
Starting in 2007, the company called consumers on the federal Do-Not-Call Registry and used illegal robocalls to sell its products, the FTC said. USB purchased lists of consumers who had contacted online companies to inquire about purchasing major medical health insurance.
 
According to the complaint, USB made "material misrepresentations" in its sales pitches and charged an enrollment fee of $100 to $500 and a monthly "premium" of $300 to $1,300.
 
"Medical discount plans don't pay your health care costs," according to a statement by the FTC. What the plans often do is simply provide a list of providers who may be willing to offer discounts for services.
 
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