Big Take Telemarketers’ New Trick to Sell Bare-Bones Health Plans
May 7, 2025
Zach Mider, a Bloomberg reporter, dives into the alarming world of health plan telemarketing, revealing how a former sitcom writer exploited a loophole in the Affordable Care Act. Over 100,000 households fell for these bare-bones plans, often promising more than they deliver. Mider shares shocking case studies, including deceptive marketing tactics that prey on vulnerable consumers. The discussion emphasizes the urgent need for regulatory measures to protect individuals from misleading sales practices that threaten the stability of the American health care system.
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Stromingers' Health Plan Story
- Sarah and Joe Strominger bought a health plan through telemarketers promising to cover costly medical needs.
- They paid nearly $9,000 upfront but found most prescriptions and tests were not covered.
Loophole through Employment Status
- These health plans exploit a legal loophole by employing customers to evade ACA insurance rules.
- Customers become employees of companies offering plans that don't meet typical coverage standards.
Low Medical Coverage Despite Low Cost
- These plans cost less monthly but spend only a small fraction of premiums on actual medical care.
- High commissions and fees to sales agencies reduce the funds available for coverage compared to ACA rules.