California Attorney General Rob Bonta says it has reached a $1.2 million settlement with a company accused of advertising and selling “fake health insurance” in the state over the past few years.
Attorney General’s Office, Sedera, Inc. and Sedera Medical Cost Sharine Community said it sold the plan to more than 2,000 Californians. The current complaints claim that Sedera sold health insurance plans below market rates because Sedera was not compliant with state law.
“They didn’t offer the essential health benefits that Californians are qualified for,” Bonta said. “We welcome businesses in the state, but we don’t allow them to prey on our people.”
Customers are said to have been led to believe that Cedella’s plans are “substantially equivalent to ACA’s health insurance or service plans.”
A survey from the state found that the Cedella Plan did not provide preventive care. This is necessary under California law.
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As part of the $1.3 million settlement, businesses will have to pay $800,000 in consumer compensation and $560,000 in civil penalties. The company is also prohibited from selling or offering services in California and must close its California customer list.
Bonta encouraged Californians to “do your research” before choosing a health insurance plan, and considered applying for “affordable and reliable coverage through eligible California.”
The full complaint can be read here.
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