Texas-Based Company Sued For Selling Fraudulent Discount Cards To Uninsured Pregnant Women

Main Category: Litigation / Medical Malpractice
Also Included In: Pregnancy / Obstetrics
Article Date: 17 Apr 2008 - 7:00 PDT

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The Texas attorney general's office on Monday filed a lawsuit against the Austin-based company Affordable HealthCare Options, or AHCO Direct, accusing it of selling fraudulent discount health cards to uninsured pregnant women, the Austin American-Statesman reports.

According to the American-Statesman, the company's website advertises that its MaternityCard is accepted by numerous health care providers and covers up to 60% of the costs of doctor's visits, sonograms, prescriptions and other prenatal care. The lawsuit says the card costs $199 to enroll and $99 a month, and it was advertised on Google. According to the lawsuit, members said that when they went to use the card at AHCO Direct preferred providers, the providers told them it would not be accepted. The lawsuit claims that when the women complained and attempted to cancel the card, they were charged a $250 cancellation fee. According to the state attorney general's office, 140 people complained to the office and the Better Business Bureau about the card.

The company is charged with multiple violations of the Texas Deceptive Trade Practices Act, state Attorney General Greg Abbott (R) said in a statement, adding, "Texas law prohibits vendors from baiting consumers with promises and failing to deliver on their guarantee." In a statement, AHCO Direct said it "takes the statements by the attorney general's office very seriously and will actively cooperate to assist in establishing the facts regarding the operation of the company" (George, Austin American-Statesman, 4/15).

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