FTC Warns 25 Health Plan Marketers Regarding Potential Deceptive Advertising

Federal Trade Commission staff are sending warning letters to 25 companies that market or generate sales leads for healthcare plans. The action coincides with the ongoing open enrollment season for healthcare plans. The warning letters put these companies on notice regarding deceptive or unfair claims that likely violate laws enforced by the Commission.

The agency expects to send additional letters on a rolling basis. The current letters target companies that market or advertise Affordable Care Act Marketplace health insurance, limited indemnity plans, and medical discount programs. Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, stated that the agency’s top priority is making healthcare more transparent and affordable.

Types of Questionable Claims Flagged by the Agency

According to information collected by FTC staff and the agency’s enforcement experience, several types of claims may violate the law. These include misrepresenting the benefits or limitations of a healthcare plan, including any insurance benefits. Companies also risk violating the law by misrepresenting that a healthcare plan is major or comprehensive medical health insurance when it is not.

Other problematic claims involve misrepresenting the costs of a healthcare plan. Furthermore, falsely claiming that consumers who enroll will receive free offers, cash rewards, rebates, or other incentives can trigger regulatory scrutiny. The letters cite examples of prior relevant FTC actions, involving entities such as Top Healthcare Options Insurance Agency, Innovative Partners, Assurance IQ and MediaAlpha, Simple Health Plans, Consumer Health Benefits, Benefytt Technologies, and Partners in Healthcare.

What the Warnings Mean for Companies

The letters do not allege any wrongdoing by any of the recipients. Instead, they encourage the companies to conduct a thorough review of their advertisements to ensure they comply with applicable laws and rules. The letters also note that the FTC is closely monitoring this marketplace for unlawful conduct that harms consumers.

Practical Steps for Consumers During Open Enrollment

Consumers experiencing rising healthcare costs should carefully review healthcare plan offers to ensure a program is what it claims to be. Shoppers should verify whether a plan is truly comprehensive major medical insurance or a limited indemnity plan or medical discount program. Comparing advertised costs, benefits, and promised incentives against the actual written terms can help consumers avoid unexpected limitations.

When dealing with complex healthcare enrollment issues or evaluating whether an advertised plan matches actual coverage terms, consulting a qualified legal professional can help clarify individual rights and options.

This article is general information based on Federal Trade Commission and court or agency records available at publication time. It is not legal advice; laws and deadlines differ by state and by case. Published October 31, 2026.