The Federal Trade Commission this week sent warning letters to 21 companies that market or generate sales leads for plans in the Affordable Care Act marketplace, putting them on notice about deceptive or unfair claims that likely violate laws enforced by the agency.
The warning letters were sent to companies that provide marketing or advertising, including lead generation, related to Affordable Care Act Marketplace health insurance and health care-related products, such as limited benefit plans and medical 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, in an announcement. “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.”
The FTC didn’t reveal the names of the companies but said the types of claims the letter warn about include:
- Misrepresentation of the benefits included in a health care plan, including any insurance benefits
- Misrepresentation that a health care plan is major or comprehensive medical health insurance or the equivalent of such health insurance
- Misrepresentation of the costs of health care plan
- False claims that consumers who enroll in a health care plan will receive free offers, cash rewards, rebates, or other incentives
The letters provide examples of prior FTC actions against marketers and lead generators that operate in this field, including Simple Health, Benefytt Technologies, Partners in Healthcare Association, and Consumer Health Benefits Association.
The letters don’t allege any wrongdoing by the companies, but the FTC encourage the companies to conduct a thorough review of their advertisements, including paid or other online ads, to ensure they aren’t engaging in deceptive or unfair conduct, and the letters note that the FTC is closely monitoring this marketplace for unlawful conduct that is harming consumers.