January 29, 2025
OLYMPIA, Wash. — Washington state Insurance Commissioner Patty Kuderer advises anyone seeking health insurance to confirm they’ve purchased coverage from a reputable company. The word of caution comes after a long investigation into Seguro Medico — which did business under a host of different names, primarily Quick Health — and testimonies from over 120 of the company’s victims.
The victims filed complaints with the Office of the Insurance Commissioner (OIC) about Quick Health’s fraudulent business practices, which included failing to refund customers for cancelled plans, misrepresenting its plan coverages during the sales process and making unauthorized charges to policyholders’ bank accounts.
“At a time when many are struggling to find affordable health insurance, it’s deeply disturbing when bad actors take such clear advantage of people,” Commissioner Kuderer said. “We will hold the perpetrators accountable, but many of these consumers are out thousands of dollars and deserve to be made whole.”
The OIC issued cease-and-desist orders against Quick Health — which also did business as OptiMed Health, ABN Health, ABN Q Health, PHCS and Cambridge Health — and licensees Arthur Walsh, Barry Adams and Albert Groff in March of 2024.
The OIC ordered Quick Health to pay a $100,000 fine and Albert Groff — whose Washington producer license the OIC revoked in 2017 — to pay a $10,000 fine. In June 2024, Quick Health demanded a hearing on the order but did not appear at a scheduled prehearing conference and the appeal was dismissed.
To date, Quick Health and Groff have not paid the fines ordered by the OIC. The victims that filed complaints with the OIC allege, collectively, more than $777,000 in harm related to Quick Health’s fraudulent actions.
Investigating Quick Health
More than 120 Washington residents filed complaints with the OIC about Quick Health’s dubious business practices, which included failing to refund customers for cancelled plans, misrepresenting its plan coverages during the sales process and making unauthorized charges to policyholders’ bank accounts. Those complaints included:
- A customer purchased a one-year plan for $5,000, which never worked. Six months later she was told that plan was no longer doing business in Washington, and for another $5,000, she could purchase a new plan. Quick Health then told her the second plan wouldn't cover Washington and asked her for more money. She requested a refund and a few days later received a collection notice because none of her medical bills had been paid. She contacted the OIC when Quick Health didn't issue a refund.
- A customer reported paying Quick Health $19,833 based on promises from Albert Groff, only to find his insurance didn't work with cancer screenings already scheduled. "They keep pawning me off to someone else and making me start all over and sending me to people who don't know the situation," the victim reported.
- A Quick Health broker offered a customer a better plan for less money, but after paying over $47,000 in 14 months and her husband surviving a heart attack their doctor informed them they had no insurance. The customer said she has stopped going to the doctor and her husband is going without his medication.
- A man purchased a plan from Quick Health to cover himself, his wife and his two children, only to learn there was no coverage. He was sold a second policy, with the same result, and offered a refund if he purchased a third policy. When he filed a complaint with the OIC his family still had no coverage and he was seeking a refund for more than $20,000 and reimbursement for $55,000 in treatments and prescriptions he'd paid out of pocket.
As of May 2023, Quick Health had sold approximately 561 plans in Washington and received more than $500,000 in commissions on those sales. These plans were issued by Consumer Data Partners LP (CDP), a company that is not authorized by the OIC to conduct insurance business as an insurer in the state of Washington.
Many of the policies Quick Health sold claimed to be self-funded Employment Retirement Income Security Act (ERISA) plans issued by CDP and, subsequently, by other entities still under investigation. This was not disclosed to the customers. Qualifying ERISA plans are exempt from certain state requirements.
ERISA plans, however, are only available to employees of a given company. None of the customers worked for CDP or were aware they had purchased, specifically, an ERISA plan.
The OIC issued order 22-0107 in 2022, in which CDP agreed to cease and desist from insurance transactions in Washington.
OIC staff opened its investigation of Quick Health in November of 2022. An attorney for Walsh, in January of 2023, said his client would not sit for an interview due to “potential litigation” involving Seguro Medico. An attorney for Adams and Groff, in February of 2023, said his clients were unable to take part in the investigation because they’d been detained by federal agents.
House Bill 1199
The OIC can act against an insurance company or agent that behaves illegally, but it does not have the authority to order them to pay their victims back.
Kuderer is requesting legislation this year to give her office this authority. She testified on House Bill 1199 before the House Consumer Protection and Business Committee on January 23. The companion bill (SB 5331) is scheduled to be heard in the Senate Committee on Business, Financial Services & Trade this Thursday, January 30. The proposed legislation also brings the OIC’s fining authority for property and casualty insurers in line with its authority over health insurers.
“This sort of egregious bad behavior is an example of why we need this bill,” Kuderer said. “These victims should not have to seek justice in the court system. They were wronged and they deserve to get their money back.”
If you’ve been harmed
The OIC has made other regulatory agencies aware of Quick Health’s activities and how they are impacting Washington consumers. If you are a Washington resident who has been harmed by Quick Health:
- Consider filing a complaint with the Washington State Attorney General’s Office (AGO), which has broad authority over consumer protection related matters.
- If you need a qualified health plan and wish to enroll, the Washington Health Benefit Exchange (1-855-923-4633) is aware of Quick Health’s fraudulent activity and encourages consumers to contact them to request a special enrollment period.
- Contact your banking institution to dispute any unauthorized charges, stop future drafts, or inquire about their fraud mitigation processes.
Tips for purchasing health insurance
The most reliable source of individual or family health coverage remains the state Health Benefit Exchange. Anyone looking for health insurance can find a plan on the Exchange’s Washington Healthplanfinder and check the OIC’s Consumer tools page to ensure the company is registered to sell insurance in Washington.
Open enrollment for individual health plans runs from Nov. 1 to Jan. 15 each year.