People shopping for healthcare coverage are the focus of a new FTC warning campaign about misleading benefits, costs and cash-incentive claims. FTC staff said October 29 that they are sending letters to 25 companies that market healthcare plans or generate sales leads.
The agency says it expects to send more letters on a rolling basis. Its announcement expressly states that the letters do not allege wrongdoing by any recipient.
Which claims the warning covers
The FTC identifies misrepresentations about a plan's benefits or limitations, its costs, and whether it provides comprehensive medical insurance. It also warns against false promises that enrolling will bring free offers, cash rewards, rebates or other incentives.
The companies operate in marketing for Affordable Care Act Marketplace insurance and other healthcare products, including limited indemnity plans and medical discount programs, according to the announcement. The warning does not say that every product in those categories is unlawful.
The published letter cites earlier FTC cases to illustrate the conduct staff are warning about. Those examples are not new findings against the companies receiving this round of letters.
Calls and false affiliations
The letter also discusses telemarketing restrictions, including the National Do Not Call Registry and the consent or narrow exceptions applicable to calls to registered numbers. It warns about charging consumers without express, informed consent.
A separate section addresses false claims of government or business identity, affiliation, endorsement or sponsorship. The examples include impersonating a government health agency or an insurance carrier.
These are compliance warnings about claims and sales practices. The documents do not assess the benefits of an individual reader's plan or establish an enrollment deadline.
What the letters ask companies to do
Staff encourage a comprehensive review of advertising and marketing practices, including websites, social media, promotional communications and representations through distributors, marketing affiliates and sales agents.
The template explicitly says it does not reflect a staff assessment or conclusion that the recipient has engaged in illegal conduct. It says staff will continue monitoring the market and take enforcement action as warranted.
The published template has placeholders for the recipient and date. It does not establish when any particular company received a letter or how it responded.