More than $1.1 million will be refunded to consumers victimized by a telemarketing operation that allegedly tricked them into buying worthless medical discount plans, according to the Federal Trade Commission.
The scam was halted in June 2012. Under several settlement orders, Health Care One, Americans4Healthcare Inc., Elite Business Solutions Inc., Mile High Enterprise Inc. and their principals were barred from having any role in a health care-related enterprise and from selling health care-related goods or services.
Health Care One and its affiliates allegedly deceived consumers by marketing medical discount plans as government-endorsed health insurance and claiming they would deliver substantial savings on consumers' health care costs.
According to the FTC's complaint, filed in the Central District of California, the companies also falsely claimed that their program was widely accepted by health care providers in consumers' local communities. The Health Care One companies touted their services in television commercials and radio ads. They promised “100% satisfaction” and a money-back guarantee.
A total of 50,395 checks will be mailed to consumers and will expire 60 days after they are issued.