When Elizabeth Gildersleeve canceled a health insurance plan that failed her, she thought her problems were over. Instead, her credit card kept getting hit again and again, resulting in charges that ultimately totaled about $12,000.
“I have to tell you, I was losing sleep over it,” Gildersleeve, of Charlotte, North Carolina, told local station WBTV. (1) “It was like a kick in the stomach.”
She thought she had purchased a legitimate 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 can only pay a small amount for a small number of conditions over a short period of time — or a complete sham.
And when she called the North Carolina Department of Insurance for help? They could not step inside.
“These are not licensed insurance companies,” a spokesman for the North Carolina Department of Insurance told her. “The plans do not fall under our jurisdiction.”
The problem 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 I didn’t want to do it,” she said. She began to look at other options.
A representative of “Cambridge Health PHCS” proposed a policy that “met all the criteria for Obamacare.” It sounded legit.
Then reality set in.
“I had to have an MRI and I was told it would be paid for at 70%,” Gildersleeve recalls. “Come to find out they paid nothing at all.”
She aborted the plan – or thought she did. But the accusations did not 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 new 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 activity over the past five years but was unable to take action because the companies were not licensed insurers.
It’s a loophole that affects consumers across the United States
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 can exclude coverage for pre-existing conditions, prescription drugs and mental health. (2)
But in Gildersleeve’s case, her insurance plan may not have existed at all.
In May 2025, federal prosecutors indicted two companies and four men accused of running nationwide telemarketing schemes under names such as 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 guilty. Their trial is scheduled for 2026.
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With health care costs rising, many Americans are tempted by cheaper options. 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 early retirees, ACA marketplace plans can cost hundreds per month, especially without subsidies.
That makes offers like Gildersleeve’s “ACA Compliant, Low Monthly Payment, Instant Coverage” sound appealing. But confusion between a “major medical,” “short-term” and “limited benefit” plan is one of the biggest pitfalls in the system.
Here’s what to do if you’re looking for health coverage:
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Verify the license. Every real insurer and broker must be licensed by your state’s insurance department. In North Carolina, visit www.ncdoi.gov.
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Request everything in writing. Legitimate insurers send a Summary of Benefits and Coverage (SBC). Scammers often refuse or send vague PDFs full of fine print. (5)
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Watch out for pressure tactics. If they say, “‘We’re going to give you this rate and it’s a really good rate today. Tomorrow it’s going to be a higher rate’ — 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 won’t do that.”
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Monitor your bank and credit statements. Unauthorized recurring charges are the first sign that something is wrong. Report disputes immediately and contact your state attorney general or the FTC at reportfraud.ftc.gov.
The Federal Trade Commission logged 115,473 reports of health-related fraud in 2024. (6) For retirees or the self-employed, a bogus plan can wipe out years of savings and leave them uninsured when a medical crisis strikes.
“I made a promise to myself that if I had an opportunity to speak out and inform people, maybe someone wouldn’t 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 fraud begins. The best protection remains vigilance and skepticism.
Because if a company promises full coverage at half the price, it could end up costing you everything.
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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.
