FTC warns 21 health insurance brokers against deceptive tactics
The Federal Trade Commission (FTC) issued warning letters to 21 companies, reminding them of regulations for marketing outreach as they seek new members for health plans.
In its letters, the agency does not accuse any group of wrongdoing. Instead, they warn against deploying certain lead generation tactics that commonly land medical plan brokers in hot water, such as using robocalls to sell plans and contacting individuals whose names are on the national Do Not Call Registry.
Further, the FTC warns companies against falsely claiming to be a “provider of government-sponsored health insurance policies” or “endorsement or sponsorship by a government agency.”
“FTC staff is not singling out your company or suggesting that you have engaged in illegal conduct,” the agency wrote. “We are widely distributing similar letters to other companies engaged in marketing and lead generation efforts related to health insurance and healthcare-related products.”
The 21 companies were also reminded not to misrepresent the quality of coverage being offered, to be transparent about the cost of a plan, and not to falsely claim that those who “enroll in a healthcare-related product will receive free offers, cash rewards, rebates or other incentives.”
“The letters provide examples of prior relevant 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 agency added.
“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,” Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, said in a statement. “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.”
Open enrollment for health coverage sold through the Affordable Care Act and state-level marketplaces is ongoing. The final day for patients to change or acquire health coverage for the coming year is Jan. 31.
Chad is an award-winning writer and editor with over 15 years of experience working in media. He has a decade-long professional background in healthcare, working as a writer and in public relations.