Cease and Desist Order Issued Against Brokerage Issuing Fake Health Insurance
- September 28, 2018
Cease and Desist Order Issued Against Pennsylvania and Texas Companies Fraudulently Marketing Fake Health Insurance Plans
Des Moines, IA – The Iowa Insurance Division recently issued a cease and desist order for Xpress Healthcare, LLC based in Feasterville, Pennsylvania, and New Benefits, LTD based in Dallas, Texas. The order stems from the use of untrue, deceptive and misleading advertising for fake health insurance plans and for doing insurance business in Iowa without a license.
“While it can be convenient for consumers to purchase insurance online, it’s also easier for those wishing to defraud people to do harm,” Iowa Insurance Division spokesman Chance McElhaney said. “In this case, unsolicited advertisements offered fake health insurance plans from Xpress Healthcare, LLC and New Benefits, LTD as ACA-compliant health insurance products through Facebook. It’s also important to note that neither Xpress Healthcare, LLC nor New Benefits, LTD are licensed to sell insurance in Iowa anyway.”
Iowans wishing to purchase ACA-compliant health care coverage should talk with a licensed insurance agent or visit www.healthcare.gov for more information.
“We encourage Iowa consumers to reach out to our office if something looks too good to be true, because it generally is. With all the changes happening in the health insurance space recently, scammers will attempt to use that confusion to take advantage of folks,” McElhaney said. “The Iowa Insurance Division recommends Iowans contact a licensed insurance agent when looking to purchase any type of insurance policy.”