WASHINGTON, D.C. — A federal court has temporarily shut down a nationwide operation accused of posing as government agencies and major insurers to sell misleading health plans that left consumers with unexpected medical costs.
What This Means for You
- Some “health plans” sold online or by phone may not provide real insurance coverage
- Scammers may impersonate government agencies or insurers to pressure payments
- Consumers could face large medical bills if coverage is not what was promised
Last week’s action, requested by the Federal Trade Commission, targets multiple companies and individuals accused of running a telemarketing scheme that sold what were described as comprehensive health insurance plans.
A temporary restraining order — a court order that immediately stops alleged illegal activity while a case proceeds — was issued by a U.S. District Court in Florida.
How the Scheme Allegedly Worked
According to the FTC’s complaint, the defendants marketed plans as “state issued” preferred provider organization (PPO) insurance — a type of health plan that typically offers broad coverage and flexibility in choosing doctors.
Investigators allege the plans were not legitimate insurance and could not be sold on any state or federal health insurance marketplace.
Instead, the products often provided limited benefits, such as capped payments for certain services or discounts, and in some cases excluded major services like hospital care entirely.
The FTC said consumers paid hundreds of dollars per month, believing they had comprehensive coverage.
Targeting the Uninsured and Insured
The complaint alleges the operation targeted both people seeking new insurance and those who already had coverage.
Telemarketers allegedly told uninsured consumers they were purchasing full-coverage plans with low or no out-of-pocket costs.
For consumers who already had insurance, callers allegedly claimed to represent their insurer or a government agency and warned that their coverage would be canceled unless they made immediate payments.
Financial and Health Consequences
When consumers attempted to use the plans, many discovered they did not cover expected services, according to the complaint.
As a result, some delayed medical treatment, while others incurred significant medical debt.
The FTC also alleges that consumers were enrolled in recurring payment plans without clear consent and faced difficulty canceling those charges.
Alleged Legal Violations
The complaint accuses the defendants of violating multiple federal laws, including the FTC Act, the Telemarketing Sales Rule, the Impersonation Rule, and the Gramm-Leach-Bliley Act, which governs the protection of consumers’ financial information.
Regulators allege the companies misrepresented their affiliation with government entities and used deceptive practices to obtain consumers’ financial details.
Companies and Individuals Named
The defendants include Innovative Partners, LP, which operated under names such as Innovative Health Plan and Healthcare Plan, and American Collective, LP, doing business as ACLP Health Plan.
Other named entities include Papyrus Green Investments LLC and Health Plan Administrators, LLC, along with owner Ahmed Ibrihim Shokry and executive Amani Ibrahim Shokry.
Enforcement and Next Steps
The FTC voted 2-0 to file the complaint, which was initially filed under seal in the U.S. District Court for the Southern District of Florida before being made public.
The agency is seeking refunds for affected consumers.
FTC Chairman Andrew N. Ferguson said the action reflects a broader enforcement push.
“When companies engage in practices that inflate prices, limit patient access to medical care, or undermine the integrity of the healthcare system, consumers suffer,” Ferguson said.
The case will now proceed in federal court, where the allegations must be proven.
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