As the open enrollment period for healthcare plans continues, the Federal Trade Commission (FTC) has issued warning letters to 21 companies involved in marketing or generating sales leads for these plans. The FTC staff is alerting these companies about potentially deceptive or unfair claims that could breach laws enforced by the agency.
The targeted companies are engaged in marketing or advertising, including lead generation, related to Affordable Care Act Marketplace health insurance and other healthcare-related products such as limited benefit plans and medical discount programs.
“It is critical for consumers’ health and financial well-being that marketers of health plans be honest about the plans they and their partners are offering,” stated Samuel Levine, Director of the FTC’s Bureau of Consumer Protection. He added, “The FTC has been watching this important sector closely, especially during open enrollment season, and these warning letters put companies on notice that unlawfully marketing or advertising health plans to consumers can result in serious legal consequences.”
The types of claims highlighted by FTC staff include misrepresentations regarding benefits included in a healthcare plan, falsely describing a plan as major or comprehensive medical health insurance, misrepresenting costs associated with a healthcare plan, and incorrectly asserting that enrollees will receive free offers or incentives like cash rewards or rebates.
Examples of previous relevant FTC actions against similar entities include cases involving Simple Health, Benefytt Technologies, Partners in Healthcare Association, and Consumer Health Benefits Association.
Although the letters do not accuse any recipients of wrongdoing at present, they urge the companies to thoroughly review their advertisements to ensure compliance with applicable laws. The FTC is monitoring this marketplace closely for unlawful practices that may harm consumers.
The Federal Trade Commission's mission includes promoting competition while protecting and educating consumers. They emphasize that they will never demand money from individuals nor make threats. More information on consumer topics can be found at consumer.ftc.gov. Fraudulent activities can be reported at ReportFraud.ftc.gov. For updates on consumer alerts and news from the FTC, follow them on social media or subscribe to their communications.
