Consumer Protection

HCC Life Medical Insurance Fraud and Deceptive Practices

Multi-State Class Action Lawsuit Against HCC Medical Insurance Services Filed in January 2018 in Indiana

On January 3, 2018, Lieff Cabraser and co-counsel filed a multi-state class action lawsuit in Indiana federal court alleging that HCC Medical Insurance Services, LLC HCC Life Insurance Company, and Health Insurance Innovations, Inc. (“Defendants”) have cheated the plaintiffs—consumers of short-term insurance plans who have incurred sometimes catastrophic medical expenses—by routinely and systematically refusing to pay promised insurance benefits, including through the common vehicle of post-claims underwriting. The named plaintiffs are residents of South Portland, Maine, Box Elder, South Dakota, and Post Falls, Idaho.

The complaint in the lawsuit alleges that Defendants’ marketing and claims processing procedures are purposely engineered and uniformly applied to accomplish the delay and denial of valid claims, rendering their short-term insurance products effectively worthless and violating federal and state law in the process. The lawsuit seeks monetary and equitable remedies for the class, including treble damages based on the fraudulent and damaging nature of the conduct, and an order requiring Defendants to immediately cease their unlawful, deceptive, and obstructive practices. Plaintiffs also seek the establishment of a common fund for the payment of medical expenses incurred by Plaintiffs and the Class as a result of Defendants’ practices. Read a copy of the press release announcing the lawsuit.

Earlier HCC Insurance Fraud Class Action Filed in 2017 in California

Lieff Cabraser, with co-counsel, represents HCC Life Insurance medical insurance policyholders in a proposed class action lawsuit filed in federal court in San Francisco against HCC Life Insurance and related parties (“HCC”). Plaintiffs allege that HCC has fraudulently marketed their insurance products and has perpetrated a scheme of delaying, refusing to pay, and/or obstructing policyholders’ claims in bad faith and in violation of California law.

The complaint also alleges that HCC markets short term medical insurance policies via outside brokers who, in addition to using common unscrupulous and dishonest sales tactics, falsely claim to be licensed insurance brokers. Plaintiffs allege that the policies are marketed to conceal a host of coverage exceptions not disclosed to consumers prior to purchase.

The complaint notes that multiple states have sent the company and its affiliates formal letters directing them to stop selling their fraudulent short-term insurance plans through unlicensed brokers and via misinformation and deceptive practices.

Contact National Fraud Lawyers at Lieff Cabraser

If you are an HCC policyholder and your claims have been denied or you have had insurance payments delayed by HCC, we welcome the chance to speak with you about your legal rights. Please contact us using the form below or by calling us toll-free at 1 800 541-7358.


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