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CA Department of Insurance

Department takes action to stop deceptive automated marketing calls to health insurance consumers

News: 2018 Press Release

For Release: August 29, 2018
Media Calls Only: 916-492-3566
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Department takes action to stop deceptive automated marketing calls to health insurance consumers
Order issued to end false claims about health insurance coverage and deceitful sales practices

SACRAMENTO, Calif. — The California Department of Insurance today issued an Order to Show Cause to Health Plan Intermediaries Holding LLC, an out-of-state insurance agent. The Order alleges Health Plan Intermediaries is participating in deceptive sales practices by misrepresenting health policies to consumers and claiming to be offering coverage that is compliant with the Affordable Care Act (ACA) to California residents from four major national health insurers, three of which don't actually sell individual market policies in California.

Health Plan Intermediaries and individuals who identified themselves as licensed to sell health insurance in California claimed to be offering a special enrollment opportunity for ACA-approved policies; however, the policies Health Plan Intermediaries was offering do not comply with the ACA benefit requirements.

"The Department of Insurance is the lead law enforcement agency for California's health insurance market," said California Insurance Commissioner Dave Jones. "The department is taking every action to ensure all licensees follow the law and are not taking advantage of California consumers. Those engaging in misleading practices will be held accountable."

The department has received a number of complaints regarding Health Plan Intermediaries. Consumers who have received automated calls from Health Plan Intermediaries or its agents who have questions are encouraged to contact the department for assistance at 800-927-4357.

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Media Note:

Order to Show Cause – Health Plan Intermediaries

The California Department of Insurance, established in 1868, is the largest consumer protection agency in California. Insurers collect $340 billion in premiums annually in California. Since 2011 the California Department of Insurance received more than 1,000,000 calls from consumers and helped recover over $469 million in claims and premiums. Please visit the Department of Insurance website at Non-media inquiries should be directed to the Consumer Hotline at 800-927-4357. Teletypewriter (TTY), please dial 800-482-4833.

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