FTC staff sent warning letters to 25 companies that market healthcare plans or generate sales leads for them, the commission said on Oct. 29, while open enrollment is underway. The FTC healthcare plan warning letters accuse no recipient of wrongdoing, the agency said. The letters cite seven earlier FTC cases against companies in the same business, so each recipient’s next advertisement can be read against a case the agency already brought. Two of the companies named in those cases also appear on a separate FTC list released the same day, which lists them as Impersonation Rule actions for false government-affiliation claims.
What the FTC Told the 25 Companies
The letters go to companies that advertise Affordable Care Act Marketplace coverage and other products such as limited indemnity plans and medical discount programs. The FTC expects to send more letters on a rolling basis.
Staff flagged four practices as likely violations of laws the commission enforces. They are misrepresenting a plan’s benefits or limits, claiming a plan is major medical insurance or its equivalent when it is not, misrepresenting a plan’s cost, and falsely promising free offers, cash rewards, rebates or other incentives to people who enroll.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in the release, “open enrollment is not an invitation to misrepresent what their plans actually cover.” He called making healthcare more transparent and affordable a top priority for the agency.
Earlier FTC Cases Cited in the Letters
The letters point to prior FTC actions against Top Healthcare Options Insurance Agency, Innovative Partners, Assurance IQ and MediaAlpha, Simple Health Plans, Consumer Health Benefits, Benefytt Technologies and Partners in Healthcare.
Two of those names, MediaAlpha and Innovative Partners, appear in the FTC’s Oct. 29 summary of actions under its Impersonation Rule. The agency describes MediaAlpha as a health insurance lead generator that made false government-affiliation claims, and Innovative Partners as a company that made false government-affiliation claims while marketing healthcare plans.
The same summary says the rule has produced more than $80 million in consumer redress since it took effect in 2024, and that civil penalties can reach $53,088 per violation. Those are the remedies and penalties the agency has available when a plan advertisement crosses the line.
When Open Enrollment Starts and Ends
Open enrollment on HealthCare.gov began Nov. 1. Consumers who enroll or change plans by Dec. 15 and pay their first premium get coverage starting Jan. 1, according to HealthCare.gov. Enrollment closes Jan. 15, and plans chosen between Dec. 16 and that date start Feb. 1. The FTC tells consumers to report suspected fraud at ReportFraud.ftc.gov or through its Consumer Response Center at 877-382-4357. The enrollment window runs through Jan. 15.
