Federal Trade Commission staff are sending warning letters to 25 companies that market or generate sales leads for healthcare plans, the agency said Thursday. The letters put the companies on notice about deceptive or unfair claims that likely violate laws the Commission enforces.
The warnings come while open enrollment season for healthcare plans is in progress. The letters are being sent to companies that market or advertise Affordable Care Act Marketplace health insurance or other healthcare products, such as limited indemnity plans and medical discount programs. The agency expects to send additional letters on a rolling basis.
The Federal Trade Commission did not name the 25 companies. The letters do not allege any wrongdoing by any of the recipients. They encourage the companies to conduct a thorough review of their advertisements to ensure they are complying with applicable laws and rules.
“Making healthcare more transparent and affordable is a top priority for the FTC,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection. Mufarrige said consumers dealing with rising healthcare costs should not also have to worry about whether a plan or program is what it claims to be. “Today’s letters remind companies that open enrollment is not an invitation to misrepresent what their plans actually cover,” he said.
The types of claims that may violate the law draw on information collected by FTC staff and on the agency’s enforcement experience, according to the Commission. Those claims include misrepresenting the benefits or limitations of a healthcare plan, including any insurance benefits. They also include misrepresenting that a plan is major or comprehensive medical health insurance, or the equivalent of such insurance, when it is not.
Misrepresenting the costs of a healthcare plan may also violate the law, the FTC said. Falsely claiming that consumers who enroll in a plan will receive free offers, cash rewards, rebates or other incentives may violate the law as well.
The letters provide examples of prior FTC actions against marketers and lead generators that operate in this market. Those examples include Top Healthcare Options Insurance Agency, Innovative Partners, Assurance IQ & MediaAlpha, Simple Health Plans, Consumer Health Benefits, Benefytt Technologies, and Partners in Healthcare. The agency did not describe the results of those earlier actions.
The letters also note that the FTC is closely monitoring this marketplace for unlawful conduct that is harming consumers. Mufarrige said the FTC will stay focused on the market and will hold companies responsible if they unlawfully market or advertise healthcare plans to consumers.