A Texas-based health insurance agency has agreed to pay $5 million to settle allegations of unfair and deceptive business practices in Massachusetts, the state’s Attorney General announced.
The settlement with Adroit Health Group LLC, including affiliates The Adroit Group, LLC and A1 Health Group, LLC (collectively “Adroit”), resolves claims that the company sold health plans to thousands of residents that failed to meet state and federal requirements.
Under the terms of a consent judgment entered in Suffolk Superior Court, Adroit is permanently barred from selling, offering, or administering any health insurance policies or non-insurance health programs in Massachusetts.
A significant portion of the $5 million settlement will be distributed as restitution to Massachusetts consumers who have purchased plans through the agency since 2016. The Attorney General’s Office (AGO) stated it will determine the distribution method and contact affected consumers directly.
State prosecutors alleged that Adroit deceptively marketed its products as comprehensive health insurance that met federal and state coverage requirements, when in fact the company did not sell qualifying plans. The AGO further claimed that Adroit misled consumers about costs and benefits, charged unauthorized fees, and failed to provide refunds to those who attempted to cancel their coverage.
The company also allegedly utilized multiple business names, including “Strata Health Group” and “A1,” to conduct its operations, which the state argued furthered its deceptive practices.
“No company should be allowed to exploit a person’s fundamental need for affordable, comprehensive health coverage,” Massachusetts Attorney General Andrea Joy Campbell said in a statement.
“While this settlement cannot undo the harm caused by Adroit, it will deliver meaningful relief to affected Massachusetts consumers, hold Adroit accountable for its misconduct and prevent this company from harming Massachusetts consumers again,” she added.
Adroit Health Group could not be reached for comment following the announcement.
The investigation and settlement were led by the Attorney General’s Health Care Division.