Open enrollment season is getting underway, and the Federal Trade Commission sent warning letters to 25 companies that conduct marketing or generate sales leads for insurers.
The commission said in an announcement that the letters aim to put these companies on notice about deceptive or unfair marketing tactics that are likely unlawful. Activities in question include misrepresenting the benefits or limitations of a plan, or portraying a plan as comprehensive when it isn’t.
In addition, FTC also warned against misrepresenting any costs associated with a plan or falsely telling consumers that a plan offers free rewards, cash offers or other incentives.
“Making healthcare more transparent and affordable is a top priority for the FTC,” said Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, in the announcement.
“Americans experiencing rising healthcare costs should not also have to worry about whether a healthcare plan or program is what it claims to be,” Mufarrige continued. “The FTC will remain focused on monitoring this market and will not hesitate to hold accountable companies that unlawfully market or advertise healthcare plans to consumers.”
The FTC letters were largely sent to firms that market plans on the Affordable Care Act’s exchanges, where open enrollment opened on Sunday, Nov. 1. Medicare is also in its annual enrollment period, which continues through Dec. 7, and late fall is when most employers begin plan selections for workers.
The agency does not allege wrongdoing in the warning letters, but instead suggests that the companies “conduct a thorough review of their advertisements to ensure they are complying with applicable laws and rules.”
The letters include examples of previous enforcement actions against marketers in the ACA space, such as Innovative Partners and Top Healthcare Options Insurance Agency.
In the letters, the agency emphasizes that its staff will be closely watching for potential violations.
“FTC staff will continue to actively monitor this market for potentially deceptive or unfair acts or practices and will take enforcement action as warranted,” the FTC wrote in the letter (PDF).