Two companies offering discount health plans in Vermont has agreed to discontinue their sales practices and pay the state $45,000. Attorney General William Sorrell says Pinnacle Choice of Cedar Grove, New Jersey, and HealthPlan Network of Lauderhill, Florida, have agreed in court to a settlement.
Sorrell says the two companies violated Vermont’s Consumer Fraud Act through their sales practices. They contacted Vermont consumers by telephone and offered the discount health plans but didn’t adequately explain the terms of the plans, their costs and how the offer could be canceled. Sorrell also says the plans didn’t have adequate networks of medical providers.
The companies are going to contact customers and offer full refunds.