FTC issues warning letters to health plan marketers
The FTC warns health plan marketers as open enrollment begins, sending warning letters to 25 companies that sell or generate leads for health-coverage products.
The notices focus on firms advertising Affordable Care Act marketplace policies, limited indemnity plans and medical discount programs. Regulators say some ads misstate benefits, hide coverage limits and obscure true costs.
Letters also flag false promises of cash rewards or enrollment incentives. While the agency does not allege wrongdoing yet, it says more letters are forthcoming and market monitoring will continue.
“Today’s letters remind companies that open enrollment is not an invitation to misrepresent what their plans actually cover,” Christopher Mufarrige said in a statement.
In the template, the bureau urges firms to audit online ads and websites, and to check social-media posts for compliance. It also calls for scrutiny of claims made by distributors and sales agents.
Regulators remind businesses that prerecorded sales calls are restricted, and calls to numbers on the National Do Not Call Registry require consent and meet narrow exceptions.
Read Also: Humana Expands Medicare Advantage Benefits, Reduces Coverage Areas
The agency cautions against portraying a marketer as a government entity or insurer, or suggesting an endorsement that does not exist.
Violations could trigger court orders that halt operations, civil penalties and consumer refunds. Breaches of telemarketing and impersonation rules may also bring monetary sanctions.
The FTC issued similar warnings to 21 companies in December 2024, highlighting misleading statements about plan benefits, costs and coverage without accusing recipients of misconduct.
Separately, the Centers for Medicare & Medicaid Services reported canceling about 315,000 unauthorized enrollments affecting over 760,000 individuals.
The agency also aims to recover roughly $2.2 billion in subsidies.
