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37,000 victims still paying $6.3 million monthly for ‘scam’ health insurance

While the Federal Trade Commission pursues permanent closure of “sham” health insurer Simple Health Plans LLC, nearly 37,000 consumers are left in limbo — paying $6.3 million in monthly premiums for insurance plans the FTC says are nearly worthless.

But the consumer protection agency can’t help the consumers unless and until it convinces a federal judge to keep the Hollywood-based company closed and in a receiver’s custody until the case is resolved.

Simple Health has been shut down since Oct. 31, when it was served with a temporary restraining order.

The FTC is accusing the company of running a boiler room operation that misled tens of thousands of consumers into believing they were buying major medical insurance covering pre-existing conditions, hospital stays, in-network visits to primary care physicians and specialists, prescription drugs, and other services required by the Affordable Care Act.