When Elizabeth Gildersleeve canceled a health insurance plan that let her down, she thought her troubles were over. Instead, her credit card kept getting hit again and again, resulting in charges that eventually totaled around $12,000.
“I got to tell you, I lost sleep over it,” Gildersleeve of Charlotte, North Carolina, told local station WBTV. (1) “It was like a kick to the gut.”
She thought she’d purchased a legitimate major medical plan through a company called Cambridge Health PHCS. What she actually got, according to state officials, was either a limited-benefit plan — a type of coverage that may only pay a small amount for a small number of conditions for a short period of time — or completely fake.
And when she called North Carolina’s Department of Insurance for help? They couldn’t step in.
“These are not licensed insurance companies,” a spokesperson for the North Carolina Department of Insurance told her. “The plans don’t fall under our jurisdiction.”
The trouble began in 2023, after Gildersleeve’s husband switched to contract work and the couple lost employer-sponsored coverage. When she checked the Affordable Care Act marketplace, the premiums looked too high.
“I decided that I didn’t want to do that,” she said. She began looking into other options.
A representative for “Cambridge Health PHCS” suggested a policy that “met all the criteria for Obamacare.” It sounded legitimate.
Then came reality.
“I had to have an MRI and I was told it would be paid at 70%,” Gildersleeve recalled. “Come to find out they didn’t pay anything at all.”
She canceled the plan — or thought she did. But the charges didn’t stop. In fact, they multiplied, along with a confusing series of name changes.
“When I first got the insurance it was Cambridge Health PHCS,” she said. “At one point it was QuickHealth… When I tried to get my refund, it was called Benefits Now.”
Each name came with new charges. Some refunds appeared, but fresh withdrawals would follow days later. By the time her bank froze the account, nearly $12,000 had cycled through her credit card.
“This was just cruel,” she said.
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.
Read more: Robert Kiyosaki warns of a ‘Greater Depression’ coming to the US — with millions of Americans going poor. But he says these 2 ‘easy-money’ assets will bring in ‘great wealth’. How to get in now
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.
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 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.
Join 200,000+ readers and get Moneywise’s best stories and exclusive interviews first — clear insights curated and delivered weekly. Subscribe now.
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
WBTV (1); NAIC (2); Department of Justice (3); KFF (4); HealthCare.gov (5); FTC (6)
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.
