EAST ST. LOUIS, Ill. – Prosecutors with the U.S. Attorney’s Office for the Southern District of Illinois said Steven Dorfman, 39, and John A. Sand, 49, ran Simple Health, a health insurance telemarketing company based in south Florida.
The indictment accused both men of directing salespersons to lie to thousands of prospective customers by convincing them their policies “would function like major medical insurance.”
This led to many victims falling into tens of thousands of dollars’ worth of medical debt because the Simple Health policies didn’t cover them.
That’s because Simple Health plans provided low amounts of coverage for medical expenses.
When the policies reached their low caps, the customers were responsible for paying 100% of the medical costs beyond that.
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It’s believed Simple Health sold these limited indemnity policies to more than 400,000 people across the country between May 2012 and November 2018 and generated more than $190 million in ill-gotten gains …