Search for US Health Advisors, and you will see two very different claims. One says it is a legitimate health insurance sales company tied to UnitedHealth Group and backed by licensed carriers such as Freedom Life Insurance Company of America. The other says it looks and feels like a pyramid-style operation that pushes heavy recruiting and leaves new agents carrying the risk.
Both sides point to real facts. USHA sells regulated health insurance products. It also runs on a commission-only system where agents pay for licensing and earn based on sales. That structure creates opportunity for some and financial strain for others.
To determine whether USHA is simply a tough sales job or something more questionable, we need to look closely at ownership, products, lawsuits, and how money flows through the company.
Who Owns USHA And How It Connects To UnitedHealth Group?
Before asking whether USHA is a pyramid scheme, start with a simpler question: what is it, structurally?
US Health Advisors is not an insurance carrier. It operates as the sales and distribution arm of USHEALTH Group, a company that markets health insurance policies nationwide. The actual policies are underwritten by licensed insurance companies, including:
- Freedom Life Insurance Company of America
- National Foundation Life Insurance Company
- Enterprise Life Insurance Company
Those names matter. Underwriting carriers are the entities that assume financial risk and pay claims. State insurance departments regulate them and must file financial statements, reserves, and compliance documentation.
Financial Strength And Ratings
Freedom Life Insurance Company of America holds a Financial Strength Rating of A (Excellent) from AM Best, one of the primary rating agencies that evaluates an insurer’s ability to meet policyholder obligations.
In rating disclosures, Freedom Life appears within a UnitedHealthcare Companies rating unit, linking it to the broader UnitedHealthcare ecosystem.
UnitedHealthcare sits under UnitedHealth Group Inc, often abbreviated as UHG, which ranks among the largest health insurance companies in the United States by revenue.
That connection places USHEALTH Group inside a much larger and highly regulated insurance structure.
In simple words, the health insurance policies sold through USHA are tied to real, licensed carriers operating within the U.S. insurance regulatory framework.
That fact alone separates the company from classic illegal pyramid schemes, which typically lack genuine products and regulated backing. However, this is also the main reason why so many people are accusing USHA of being a pyramid scheme, no matter that it is legal.
A legitimate corporate structure does not automatically settle concerns about recruiting practices, commission design, or how specific health insurance plans are presented to consumers.
Those issues require a separate look.
What USHA Actually Sells?
A lot of the confusion around US Health Advisors starts with one simple assumption. People hear “health insurance” and think of a traditional major medical plan, the kind that covers hospital stays, surgeries, prescriptions, and caps how much you can pay out of pocket in a year.
That is not usually what USHA agents are selling.
Most of the policies sold through USHA are fixed indemnity plans underwritten by carriers such as Freedom Life Insurance Company of America, part of USHEALTH Group. These are real, licensed insurance products. But they work very differently from the health insurance many people expect.
What Does a Fixed Indemnity Plan Actually Cover?
Fixed indemnity plans are not designed to replace full major medical insurance. They are generally considered supplemental coverage, meaning they can help with smaller, predictable medical expenses.
They can offer lower monthly premiums and can start paying benefits quickly.
A fixed indemnity plan pays a set dollar amount for specific services. For example:
- For a doctor visit
- Payment per day in the hospital
- Payment for certain procedures
If the plan says it pays 1,000 dollars for a hospital stay and the hospital bill is 8,000 dollars, the insurance pays 1,000. The rest is on you.
That structure is legal. It is also very different from traditional major medical coverage, where the insurer typically covers a percentage of costs after deductibles and where there is an annual out-of-pocket maximum that limits financial exposure.
But they do not meet the same standards as ACA marketplace plans. They are not required to cover all essential health benefits or to come with the same level of consumer protections tied to comprehensive health insurance.
This is where complaints often begin. Some buyers believe they purchased full health insurance. Then a major medical event happens, and they discover the payout is limited to the fixed benefit schedule.
USHA is selling real policies backed by licensed carriers. The question is whether buyers clearly understand what type of health insurance they are purchasing.
That difference between expectation and reality is crucial to the debate.
Why Some People Call US Health Advisors A Pyramid Scheme?
The word “pyramid scheme” usually comes up when people talk about the way USHA recruits and pays its agents.
Here is how it works. Most US Health Advisors agents are not salaried employees. They are independent contractors. To get started, they typically pay for a state insurance license, background checks, and sometimes training or sales leads. After that, income comes from commissions. If you do not sell policies, you do not get paid.
That setup is not unusual in the insurance world. Many life and health insurance agents work on commission. The tension comes from how growth happens inside the company.
Agents can earn money not only from their own sales but also from the production of agents they recruit. The layered commission system is what makes some people compare it to multi-level marketing.
In a true illegal pyramid scheme, money flows mainly from recruitment fees and not from selling real products. USHA does sell real insurance policies backed by licensed carriers. That is an important difference.
Still, the experience on the ground can feel very different depending on where someone stands. Some agents say they built solid incomes through sales and team building. Others say they spent thousands on licensing and leads and never made it back.
When a business produces a small group earning well at the top and many struggling at the bottom, people start using the word pyramid, even if the structure does not meet the legal definition.
The real issue is risk. In this model, most of the financial risk sits with the individual agent, not the company.
Some of the criticism has made its way into federal court. In late 2024, a case called Kraemer v. USHealth Advisors, LLC, accused the company of violating federal telemarketing law by continuing to send marketing text messages after a consumer tried to opt out.
At the same time, no court has ruled that USHA operates as an illegal pyramid scheme.
How Are USHA Agents Paid? Commissions, Recruiting, And Overrides
To understand why some people are excited about US Health Advisors, and others walk away angry, you have to understand how money moves inside the system.
USHA agents sell health insurance policies issued by carriers such as Freedom Life Insurance Company of America.
When a policy is issued, and the customer pays the premium, the agent earns a commission based on that premium.
How Commissions Actually Work?
- If a customer buys a policy costing 500 dollars per month, that equals 6,000 dollars per year.
- Depending on the contract level, the agent might receive a large portion of that first-year premium as commission.
- In later years, the agent may receive smaller renewal payments if the customer keeps the policy active.
The U.S. Bureau of Labor Statistics reports wide income variation among insurance sales agents.
The Override Structure
The part that creates controversy is the layered pay structure.
USHA allows agents to move into leadership levels. When that happens, they can earn overrides. That means they receive a percentage of the policies sold by agents they recruit and mentor.
Example:
- Agent A sells 50 policies per year and earns commission on those.
- Agent A recruits Agent B and Agent C.
- If B and C also sell policies, Agent A earns a small override percentage from their production.
Looks like a pyramid scheme, right? However, it’s fully legal, and some other businesess are also using it, like real estate.
Upfront Costs, Lead Purchases, And The Real Financial Risk
Every agent must obtain a state health insurance license. According to multiple state insurance departments, licensing exam fees, fingerprinting, and application costs commonly total several hundred dollars before training or marketing expenses are added. That part is standard in insurance.
In commission-driven insurance sales, agents often buy leads from third-party vendors. These are consumers who filled out online forms requesting information about health insurance, medical insurance quotes, or Texas health insurance plans. Industry lead marketplaces list prices ranging from under 10 dollars per shared lead to 30 dollars or more for higher-intent or exclusive contacts. Exclusive real-time leads can cost even more.
Now do the math.
If an agent buys:
- 200 leads in a month at 25 dollars each
- That equals 5,000 dollars in lead expense
The average conversion is 5 percent, which means 10 policies sold.
If commission per policy averages 600 to 1,000 dollars, depending on plan type and premium, revenue might range from 6,000 to 10,000 dollars before taxes and chargebacks.
In case a conversion drops to 2 percent, the numbers change dramatically.
LIMRA data shows that roughly 65 percent of agents who leave the industry do so within their first two years, and about 86 percent exit within four years.
Complaints, BBB Records, And What Public Data Shows
Data about reputation should come from documented sources. The three places that provide verifiable information are the Better Business Bureau, state insurance complaint databases, and federal regulatory filings.
Here is what those sources show.
Better Business Bureau
USHEALTH Advisors, LLC (Grapevine, Texas) shows:
- Rating: B
- Accreditation: Not BBB accredited
- Complaints closed in the last 3 years: 80+
- Complaints closed in the last 12 months: 30+
The complaint categories listed include billing disputes, advertising or sales concerns, and service issues.
State Insurance Complaint Index Data
Freedom Life Insurance Company of America (NAIC 62324), one of the underwriting carriers behind USHA-distributed policies, appears in Colorado Division of Insurance complaint ratio reports.
The most recent listed report shows:
- Complaint Index: 0.00
A complaint index of 1.00 represents the industry average. Below that indicates complaints were not above expected statistical levels for company size in that reporting period.
Federal Regulatory Context
The FCC issued rule updates related to consent revocation under the Telephone Consumer Protection Act, extending compliance timelines into January 31, 2027.:
There is no federal enforcement order declaring US Health Advisors an illegal pyramid scheme. Public records show marketing compliance disputes and consumer complaints, not a regulatory fraud determination.
Frequently Asked Questions
Is US Health Advisors The Same As UnitedHealthcare?
No. US Health Advisors is a sales and distribution company operating under USHEALTH Group. UnitedHealthcare is a separate insurance carrier under UnitedHealth Group Inc. They are not the same entity.
Can You Use USHA Health Plan With Any Doctor?
It depends on the specific policy. Some plans reference national provider networks such as the UnitedHealthcare Choice Plus Network. Coverage and reimbursement depend on the benefit schedule outlined in the policy, not simply network participation.
Does USHA Offer ACA Marketplace Plans?
USHA primarily distributes underwritten health insurance products through USHEALTH Group carriers. These are generally not ACA marketplace plans purchased through Healthcare.gov and may not include all essential health benefits required under ACA-compliant major medical coverage.
Are USHA Agents Required To Be Licensed?
Yes. Agents selling health insurance must hold a valid state insurance license. Licensing requires passing a state exam, background screening, and ongoing continuing education.
Can You Cancel A USHA Policy?
You can cancel a policy, but cancellation terms depend on the specific contract. Consumers should review the policy documents carefully, especially sections covering cancellation procedures and billing cycles.
The Bottom Line
US Health Advisors is not an underground operation, and it is not a ghost company. It distributes licensed health insurance products through regulated carriers such as Freedom Life Insurance Company of America, and those carriers operate within the state insurance system. There is no federal court ruling or regulatory order declaring USHA an illegal pyramid scheme.
At the same time, the structure is aggressive, production-driven, and financially uneven. Agents carry upfront costs and income volatility. Consumers must understand exactly what type of coverage they are buying, especially when fixed indemnity plans are involved. Most of the controversy surrounding USHA comes from expectation gaps, marketing intensity, and the steep learning curve built into commission-based insurance sales.
So is USHA a legitimate company? Yes, in the legal and regulatory sense. Is it low risk or simple? No. The real question is not whether it exists lawfully. The real question is whether the model fits the person considering it, either as a buyer or as an agent.