FTC Warns 25 Healthcare Plan Marketers: Do Not Deceive Consumers About Plan Terms and Costs
The Federal Trade Commission (FTC) announced on October 29 that its staff have sent warning letters to 25 companies that market healthcare plans or generate sales leads for them, telling the companies not to deceive consumers about the terms of the plans they advertise, as open enrollment season gets under way.
The recipients market or advertise Affordable Care Act (ACA) Marketplace health insurance or other healthcare products such as limited indemnity plans and medical discount programs. Claims the FTC says may violate the law include misrepresenting a plan's benefits or limitations, presenting a product that is not major medical insurance as if it were comprehensive coverage, misrepresenting costs, and falsely promising free offers, cash rewards or rebates for enrolling.
"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. "Americans experiencing rising healthcare costs should not also have to worry about whether a healthcare plan or program is what it claims to be." He said the agency will keep monitoring the market and will not hesitate to hold companies accountable, adding that "open enrollment is not an invitation to misrepresent what their plans actually cover."
The FTC stressed that the letters do not allege any wrongdoing by the recipients. They encourage each company to review its advertising thoroughly for compliance, and they cite prior FTC actions against marketers and lead generators in the same market.
The agency said it expects to send additional warning letters on a rolling basis and is closely monitoring the marketplace for unlawful conduct harming consumers.
Published by GSM · USA (original Chinese edition)
Photo: 美国联邦贸易委员会总部大楼Apex Building（资料图）。Carol M. Highsmith 摄，公共领域，经 Wikimedia Commons。 / The Apex Building, headquarters of the Federal Trade Commission (file photo). Photo by Carol M. Highsmith, public domain, via Wikimedia Commons.
