Infomarine On-Line Maritime News - NC woman canceled her ‘health insurance’ — then $12K in charges hit her card. Why regulators say they’re powerless

The regulatory blind spot

Gildersleeve filed complaints with the North Carolina Department of Insurance. The regulator confirmed it had received 21 complaints about similar operations in the past five years but could not take action because the companies weren’t licensed insurers.

That’s a loophole affecting consumers across the U.S.

The National Association of Insurance Commissioners warns that short-term or limited-benefit plans “are not regulated with the same consumer protections as comprehensive health coverage” and may exclude coverage for pre-existing conditions, prescription drugs and mental health. (2)

However, in Gildersleeve’s case, her insurance plan may not have existed at all.

In May 2025, federal prosecutors charged two companies and four men accused of running nationwide telemarketing schemes under names including QuickHealth and Benefits Now. (3) The indictment says they used fake names and false ACA claims to sell discount plans to tens of thousands of Americans.

All have pleaded not guilty. Their trial is scheduled for 2026.

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Why consumers are vulnerable

With health costs rising, many Americans are tempted by cheaper alternatives. The KFF reports that, on average, workers with employer-sponsored health insurance still contributed $6,296 to the cost of family coverage in 2024. (4)

For people between jobs, self-employed or retired early, ACA marketplace plans can cost hundreds per month, especially without subsidies.

That makes offers like Gildersleeve’s “ACA-compliant, low monthly payment, immediate coverage” sound appealing. But confusion between a “major medical,” “short-term” and “limited benefit” plan is one of the biggest traps in the system.

How to protect yourself

Here’s what you should do if you’re shopping for health coverage:

Verify the license. Every real insurer and broker must be licensed by your state’s Department of Insurance. In North Carolina, visit www.ncdoi.gov.
Request everything in writing. Legitimate insurers will send a Summary of Benefits and Coverage (SBC). Scammers often refuse or send vague PDFs full of fine print. (5)
Watch for pressure tactics. If they say, “‘We’re going to give you this price and it’s a really good price today. Tomorrow, it’s going to be a higher price’ — that’s a big red flag,” Barry Smith, deputy director of communications for the North Carolina Department of Insurance, told WBTV. “Insurance companies that are legitimate are not going to do that.”
Monitor your bank and credit statements. Unauthorized recurring charges are the first sign something’s wrong. File disputes immediately and contact your state attorney general or the FTC at reportfraud.ftc.gov.

The high toll of confusion

The Federal Trade Commission logged 115,473 health-related fraud reports in 2024. (6) For retirees or self-employed workers, one fake plan can wipe out years of savings and leave them uninsured when a medical crisis hits.

“I made myself a promise that if I had an opportunity to speak out and inform people, maybe somebody would not have to go through what I went through,” Gildersleeve said.

Her case highlights a painful truth: Even with watchdogs in place, regulation often stops where deception begins. The best protection remains vigilance and skepticism.

Because if a company promises full coverage at half the price, it may end up costing you everything.