Benefytt Technologies Inks $27.5 Million Deal Over Skimpy Plans

Benefytt Technologies Inc. will pay $27.5 million to end a class action by consumers who say they were duped into buying nearly worthless insurance plans instead of major medical insurance, papers filed Wednesday in the Southern District of Florida indicate.

The deal is expected to benefit 230,113 people who purchased limited benefit indemnity plans or various ancillary products through Simple Health and Nationwide Health.

Class members who incurred uncovered medical expenses or tax penalties under the Affordable Care Act’s individual mandate provisions will have their share of the settlement enhanced by a multiplier, according to the settlement motion.

The settlement ...