In a recent investigation by Bloomberg reporters Zachary Mider and Zeke Faux, a disturbing tale of health insurance deception was uncovered. The story revolves around a New York couple, Sarah and Joe Strohmenger, who purchased what they thought was a comprehensive health insurance plan from a telemarketer. However, they soon realized that the plan did not cover their medical needs, resulting in unexpected bills amounting to thousands of dollars. This forced them to forego crucial medical care, putting their health at risk.
The couple had unknowingly agreed to work fake “jobs” in order to obtain the health plan, a scheme orchestrated by a former TV sitcom writer turned investor named Bill Bryan. These plans, which operate in a legal grey area, are not regulated by states or federal agencies, allowing them to proliferate unchecked. The couple, along with thousands of others, fell victim to these deceptive health plans, leading to financial strain and compromised healthcare.
The scheme involves making individuals employees or limited partners of companies that do not actually sell insurance but offer subpar health plans. The plans do not meet the standards set by Obamacare, covering only a limited number of doctor visits and lab services, with no coverage for hospitalization or emergency room visits. The high commissions and fees associated with these plans often leave little money for actual medical care, with the majority going to middlemen and commissions.
Despite attempts to seek recourse through state regulators, the couple was left with mounting medical bills and no resolution. The complex network of operators involved in these schemes allows each party to shift blame onto others, leaving victims like Sarah and Joe without a clear path to justice.
As the investigation continues, it is evident that these deceptive health plans are on the rise, targeting vulnerable individuals seeking affordable coverage. With changes to Obamacare subsidies looming and administrative hurdles complicating the healthcare marketplace, it is more important than ever for consumers to be vigilant when considering health insurance options. The best course of action remains to utilize official channels like Healthcare.gov for regulated and reliable coverage.
