Class Action Accuses Obamacare Insurers of ‘RICO Enterprise’

Consumers and insurance agents filed a class action claiming several insurers targeted low-income people with misleading social media ads that allegedly claimed federal funding for marketplace health insurance would provide “hundreds of dollars per month in cash benefits, such as subsidy cash cards to pay for common expenses like rent, groceries and gas.”

The defendants, “TrueCoverage and its largest ‘downline’ agent, Enhance Health, along with other relevant nonparties” that serve as downline agents, “constitute a RICO Enterprise targeting the poorest members of American society,” said the complaint filed April 12 in the US District Court for the Southern District of ...