FTC Sends Warning Letters to 25 Health Plan Marketers

The Federal Trade Commission sent warning letters to 25 companies that market or advertise ACA marketplace insurance and other healthcare products, including limited benefit plans and medical discount programs, according to an Oct. 29 news release. The letters do not allege wrongdoing but urge recipients to review advertising, websites, social media, promotional materials and third-party marketing relationships for deceptive practices. The FTC flagged four risk areas: misrepresenting plan benefits or limitations, presenting limited plans as major medical coverage, misrepresenting costs, and falsely promising free offers or cash incentives. The agency also pointed to telemarketing rules restricting prerecorded sales calls and calls to consumers on the Do Not Call Registry, and said it will send additional letters on a rolling basis and pursue enforcement when warranted.