Open enrollment season for healthcare plans is underway. Companies that specialize in getting leads for insurance companies have a history of using deceptive advertising to gather these prospects for insurers.
The types of claims that may violate the law include:
- Misrepresenting the benefits or limitations of a healthcare plan, including any insurance benefits.
- Misrepresenting that a healthcare plan is major or comprehensive medical health insurance or an equivalent when it isn’t.
- Misrepresenting the costs of a healthcare plan.
- Falsely claiming that consumers who enroll in a healthcare plan will receive free offers, cash rewards, rebates, or other incentives.
The Federal Trade Commission staff has sending warning letters to 25 companies that market or generate sales leads for healthcare plans. The letters warn the companies about using deceptive or unfair claims that likely violate laws enforced by the commission. The agency said it will be sending additional letters.
The letters are being sent to companies that market or advertise Affordable Care Act Marketplace health insurance or other healthcare products.
“Americans experiencing rising healthcare costs should not also have to worry about whether a healthcare plan or program is what it claims to be,” Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said in a statement.
Mufarrige said the letters remind companies that open enrollment isn’t an invitation to misrepresent what their plans actually cover.
The letters provide examples of FTC actions against marketers and lead generators that operate in this market, including Top Healthcare Options Insurance Agency, Innovative Partners, Assurance IQ & MediaAlpha, Simple Health Plans, Consumer Health Benefits, Benefytt Technologies, and Partners in Healthcare.
The letters encourage the companies to conduct a review of their advertisements to ensure they are complying with applicable laws and rules.
