FTC sends warning letters to 25 companies over health insurance scams to watch during open enrollment
FTC warns about misleading ads
The Federal Trade Commission says some health insurance advertising may make coverage appear more comprehensive than it is. Certain offers promote medical discount programs instead of traditional insurance, while others may come from people impersonating government agencies or familiar insurers.
The FTC sent warning letters to 25 companies, but the agency said the letters do not accuse those businesses of wrongdoing. The letters remind companies about advertising laws, and officials said the market remains under review. More letters could follow.
How online offers can mislead
A search for affordable coverage may turn up a sponsored ad promising unusually low payments or generous benefits. A polished website, familiar logo or apparent government connection can make an offer seem trustworthy; a caller may then urge a shopper to act quickly.
Some websites collect contact details for insurance sellers through lead-generation businesses. The practice itself is legitimate, but misleading ads can direct shoppers toward products they did not mean to buy. The FTC also warns that scammers may imitate official websites or use web addresses resembling HealthCare.gov or Medicare.gov.
Check what a plan covers
Some products, including fixed indemnity plans, pay a set amount for certain medical services. Depending on the policy, that payment may be much less than the actual bill, leaving the enrollee responsible for a substantial share of costs.
Before buying, ask what kind of coverage is being offered and what it pays for. HealthCare.gov provides an explanation of Marketplace benefits at healthcare.gov/coverage/what-marketplace-plans-cover.
Key points
- The FTC is cautioning shoppers about ads that may overstate health insurance coverage.
- Some online offers promote discount programs or limited-benefit products instead of comprehensive insurance.
- The FTC’s letters went to 25 companies and did not accuse them of wrongdoing.
- Check a plan’s coverage and payments before enrolling, especially when an offer seems unusually cheap.