The FTC is warning 21 companies involved in marketing or generating leads for healthcare plans to avoid deceptive or unfair practices that may harm consumers.
These warnings come during open enrollment for healthcare plans, such as those offered through the Affordable Care Act Marketplace, as well as related products like limited benefit plans and 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,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection.
“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,” he said.
The FTC’s main concerns include:
- Misleading claims about the benefits of a healthcare plan.
- Misrepresenting plans as comprehensive health insurance when they are not.
- Providing false information about plan costs.
- Making false promises of free offers or rewards for enrollment.
The agency is urging companies to review their advertising practices to ensure compliance with the law. Violations could result in serious legal consequences.
While the letters don’t accuse the companies of wrongdoing, they highlight previous FTC actions against similar deceptive practices. The FTC is closely monitoring this sector to protect consumers.