The Federal Trade Commission announced on Apr. 22 that a U.S. district court in Florida has temporarily stopped a nationwide operation accused of impersonating the government and major insurance carriers to deceive consumers seeking health insurance. The operation, which uses names such as Innovative Partners and American Collective, is alleged to have misled people into buying what they believed were comprehensive preferred provider organization (PPO) plans that did not offer the coverage promised.
The case highlights concerns about fraudulent practices targeting individuals searching for or renewing health insurance coverage. According to the FTC's complaint, consumers paid millions of dollars in premiums for products that failed to provide adequate protection, exposing them to unexpected medical costs.
FTC Chairman Andrew N. Ferguson said, “Targeting unlawful conduct that drives up Americans’ costs, especially healthcare costs, is one of my top priorities.” Ferguson also said, “The Healthcare Task Force launched last month underscores my commitment to bringing the full strength of the agency to bear on the challenges facing American patients, providers, and communities. The Commission’s work here is essential: When companies engage in practices that inflate prices, limit patient access to medical care, or undermine the integrity of the healthcare system, consumers suffer. Under my leadership, the Commission will continue to pursue fraudsters who deceive or disadvantage people seeking medical treatment, and we will do so with every enforcement tool at my disposal.”
The FTC alleges that since early 2023 six defendants have operated a telemarketing scheme offering false promises about state-issued PPO policies with no deductibles and full coverage at low or no co-payments. The complaint states these products are not genuine PPO plans nor are they available through any government marketplace; instead they often include only limited discounts or capped payouts for specific events like emergency room visits.
In addition to misleading sales tactics aimed at uninsured individuals, telemarketers reportedly told already-insured customers—falsely claiming affiliation with real insurers or government agencies—that their policies would be canceled without immediate payment. Consumers who tried using these supposed PPO policies found themselves lacking expected coverage and sometimes faced substantial debt when seeking care.
The complaint further alleges violations including charging customers without informed consent; failing to disclose cancellation steps; making misrepresentations during telemarketing calls; posing as businesses or officials; and using false statements to obtain financial information such as credit card numbers. The FTC seeks refunds for affected consumers under laws including the FTC Act and Telemarketing Sales Rule.
A temporary restraining order was issued against defendants including Innovative Partners LP (also known as Innovative Health Plan), American Collective LP (ACLP Health Plan), Papyrus Green Investments LLC along with key executives Amani Ibrahim Shokry and Ahmed Ibrihim Shokry plus Health Plan Administrators LLC. The legal process continues following an initial vote by commissioners authorizing staff attorneys Matthew Schiltz, William Hodor, and D’Laney Gielow from the Midwest Region.
