FTC Holds Health Care Marketing Firm Responsible for Misleading Consumers


Recently, the Federal Trade Commission (FTC) took action against Benefytt Technologies for selling “sham” health care plans. According to the FTC complaint, Benfeytt Technologies and their marketing partners operated deceptive websites, such as “Obamacareplans.com,” that targeted consumers looking for comprehensive Patient Protection and Affordable Care Act (ACA) compliant health plans. Qualified ACA plans must meet specific requirements, such as providing coverage of the 10 essential health benefits and following established limits on cost-sharing. However, Benefytt Technologies was not providing ACA compliant coverage and consumers often did not learn that they were deceived until they needed the benefits to cover their health care expenses. As a result, consumers incurred thousands of dollars in uninsured medical costs. Additionally, the FTC’s complaint stated that Benefytt Technologies also bundles and charged junk fees for unwated products without consent and made it difficult for consumers to cancel their plans.  

In response to FTC’s complaint, Benefytt Technologies and two of its subsidiaries have agreed to a proposed court order that would require defendants to (1) pay $100 million to the FTC to provide refunds to consumers harmed by Benefytt Technnologies practices; (2) inform consumers  these pracctices and allow them to cancel their plan; (3) disclose important facts like totals costs and limitations before consumers purchase a plan; and (4) closely monitor all subsidiaries selling their products to ensure deceptive practices are not implemented.   

Impacted consumers may access the enrollment period from Sept. 6 through Nov. 10. Read more about the FTC action and court order here. 

Last Updated on September 30, 2022 by Aimed Alliance


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