Press Release  AG Campbell Secures $5 Million Settlement with Adroit for Unfair and Deceptive Sales and Administration of Health Plans

BOSTON — Massachusetts Attorney General Andrea Joy Campbell today announced that her office has reached a $5 million settlement with Adroit Health Group LLC, The Adroit Group, LLC, and A1 Health Group, LLC (collectively, “Adroit”), a Texas-based private health insurance agency that sold plans to thousands of Massachusetts consumers beginning in 2016. 

The settlement resolves allegations that the company used deceptive and unfair business practices to sell supplemental health insurance products and non-insurance health programs that failed to meet state and federal requirements.  

Under the terms of the Consent Judgement entered by the Suffolk Superior Court, Adroit will pay $5 million to the Commonwealth. A significant portion of the settlement will be distributed as restitution to Massachusetts consumers who purchased plans through Adroit. Once payment is received from Adroit, the Attorney General’s Office (AGO) will determine the best way to return money to impacted consumers and will contact consumers with more information about refunds. Individuals do not need to contact the AGO at this time to receive payment.  

In addition, Adroit is permanently prohibited from selling, offering, or administering any health insurance policy or non-insurance health program to Massachusetts residents. 

“No company should be allowed to exploit a person’s fundamental need for affordable, comprehensive health coverage,” said Attorney General Campbell. “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.” 

According to the AGO, Adroit deceptively marketed its products as comprehensive health insurance plans that met federal and state coverage requirements, when in fact the company did not sell qualifying insurance plans. The AGO alleges that Adroit misled consumers about costs and benefits, charged consumers without authorization, failed to provide refunds to those who attempted to cancel, and did not provide adequate disclosures regarding discount health plans and specified disease insurance policies. The company also used multiple business names, including “Strata Health Group” and “A1,” to conduct its operations – furthering the AGO’s claims of unfair and deceptive practices. 

This matter was handled by Deputy Division Chief Ethan Marks, Assistant Attorney General Nina Cohen, Senior Enforcement Counsel Emiliano Mazlen, and Paralegal Gaëlle Bouaziz of AG Campbell’s Health Care Division, with assistance from Senior Investigator Anthony Crespi of the AG’s Civil Investigations Division. 

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