UNDATED (WTAQ) – A business based in Appleton has been ordered to pay over $8.7 million in restitution following a judgement regarding a health insurance scheme.
Partners in Health Care and its principal, Gary L. Kieper, were sued in federal court by the Federal Trade Commission. The Wisconsin Better Business Bureau says it started investigating PIHC in 2011.
Overall, consumers in 32 states filed complaints with the BBB. The BBB then turned the case over to the FTC in 2013.
The company misled consumers into purchasing what they thought was health insurance, according to the complaint. The consumers actually received a “medical discount card” that was practically worthless. Those who bought the cards paid a $99 “enrollment fee” and then made monthly payments of as much as $514.
Many of the victims are Spanish speakers.
Kieper responded to the BBB complaints by saying the consumer did not buy the policy from PIHC, but enrolled through an out-of-state marketing company. He also maintained the customers did not request a refund by the deadline given.
The FTC shut down PIHC in 2014.
