No Returns on Insurance Investment

In 2018, Nate went to MyBenefitsKeeper to find a health insurance plan and chose one called Lifeshield. His mother had recently been told by her insurance that to keep a dependent on her plan, her monthly premium payment would increase by $300 a month, which the family could not afford. Due to the sudden nature of losing his insurance without a qualifying life event, Nate didn’t qualify for the special exception to access open, and had to choose a short-term plan. He began searching the internet for options, and selected the plan that he thought would suit him in coverage and in cost.  

Unfortunately, he quickly realized that this plan was not comprehensive — his doctors’ visits had a steep $75 copay, specialist visits were not covered, and his medications for ADHD were not included, costing him more than $300 monthly to refill his prescriptions, on top of the $150 a month premium. While the insurance was affordable upfront, “they nickel and dimed me. And I think the frustrating part for me was the lack of options but also the lack of protections. I think there are so many people who, like me, lose insurance without it being a major life event and end up with options that are almost worse than not having insurance. Because not only did they essentially cover nothing, I was also paying them to cover nothing.” 

In December of 2018, Nate was experiencing digestive issues that were affecting his ability to eat, sleep, and to do his job effectively. Nate went to several doctors and underwent two surgeries to identify the source of the problem, which was later identified to be a fistula. Thankfully, the second surgery was able to address the issue, and Nate started to feel some relief. However, this relief was short lived when the bill came.  

Neither surgery was covered by insurance, and Nate found himself, at 23 years old, working his first job out of college, facing more than $13,500 of medical debt. Not knowing what to do beyond paying down the cost, Nate started a payment plan in January of 2019, and did not finish paying off the debt until four years later. 

“I didn’t know what to do. And I know many people wouldn’t know what to do in my situation. I hope that someone can read this story, and see that there is some recourse they can take, and places they can turn to for help.”  

In 2024, Nate received a settlement from the Federal Trade Commission following a lawsuit against health care company Benefytt Technologies (also going by the name MyBenefitsKeeper). According to the suit, Benefytt lied about their coverage plans using false advertising practices, and their plans were not qualified under the Affordable Care Act (ACA) lacking key consumer protections. Though Nate received a small payment, it didn’t come close to the amount he lost in premiums and health care expenses. 

Nate was a victim of this “junk plan” which not only made it difficult for him to receive affordable care, but resulted in thousands of dollars of medical debt. Unfortunately, we know that Nate’s story is not unique; more than 450,000 people paid Benefytt Technologies for health coverage, and did not get the return on investment they deserved.