Federal Trade Commission staff sent warning letters on Oct. 29 to 25 companies that sell health plans or collect sales leads for them, telling them not to mislead shoppers about what the plans cover or cost. The letters arrive while Medicare’s open enrollment runs through Dec. 7 and Obamacare enrollment opens Nov. 1 in most states. They do not accuse any recipient of wrongdoing, and the FTC says more letters will follow.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, put the message plainly. “Open enrollment is not an invitation to misrepresent what their plans actually cover,” he said. A lead generator is a company that collects a shopper’s name and phone number through an ad or website and passes them to an insurance seller, which is why the letters went to both groups.
What the warning letters say
The letters went to companies that advertise Obamacare marketplace plans and other products, such as limited indemnity plans and medical discount programs, according to the FTC’s announcement. The announcement does not mention Medicare plans by name. The agency expects to send more letters on a rolling basis. The letters are staff warnings rather than orders. They urge each company to review its own ads against the laws the Commission enforces.
The FTC lists four practices it considers likely unlawful. They are misrepresenting a plan’s benefits or limits, claiming a plan is major or comprehensive medical insurance when it is not, misstating what a plan costs, and falsely promising free offers, cash rewards, rebates or other incentives to people who enroll.
Anyone who has searched for a plan online this month may already have met some of this. A shopper who types a name and number into a “compare plans” page can end up with calls from sellers whose products are not what the page described. The check that works for Medicare is to compare plans in Medicare’s own Plan Finder, or call 1-800-MEDICARE, before handing details to a marketing site. Obamacare plans are enrolled through HealthCare.gov or a state exchange.
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Medicare shoppers have until Dec. 7
Medicare’s annual open enrollment runs from Oct. 15 to Dec. 7, according to the KFF Medicare enrollment guide. Changes made in that period take effect Jan. 1, 2027, so a plan chosen by Dec. 7 is the one that starts the new year. People who want to change a Medicare Advantage plan or move to traditional Medicare after that have a second window from Jan. 1 through March 31.
For 2027, KFF says the standard Part D deductible is $700, though some plans charge less or nothing, and yearly out-of-pocket drug spending is capped at $2,400. Plan Finder is a searchable tool on the Medicare.gov site, and the phone line is 1-800-633-4227. Local help comes from the State Health Insurance Assistance Program, known as SHIP. Its counselors can be reached at 877-839-2675 or through shiphelp.org.
Obamacare enrollment opens Nov. 1
KFF’s Oct. 30 look at the coming marketplace season says open enrollment for 2027 starts Nov. 1 in most states. The cost picture adds pressure on shoppers. The finalized average increase in benchmark silver premiums is 13%, with HealthCare.gov states up 11% and state-run marketplaces up 16%, KFF’s enrollment preview says. It is the second straight year of double-digit increases.
The enhanced premium tax credits expired in 2026 and are not in effect for 2027. Most marketplace enrollees still get some subsidy, but people with incomes above 400% of the federal poverty level no longer qualify for premium tax credits. Some states, including New Mexico and California, are offering state-funded help to partly offset the loss, KFF reports, so the amount a shopper pays can depend on where they live. Marketplace shoppers are making a decision with real dollars attached, and misstating what a plan costs is one of the four practices the FTC names.
The cases behind the warning
The FTC’s announcement lists earlier actions against sellers and lead generators in this field, including Top Healthcare Options Insurance Agency in January 2026 and Innovative Partners in April 2026. It also cites a case involving Assurance IQ and MediaAlpha from August 2025. The FTC also has a consumer alert on its site, titled “Seeing lots of ads for health insurance plans during open enrollment? Read this.” The letters are not a new case, but they put recipients on notice that the agency is watching how plans are advertised during enrollment.
Shoppers who run into a deceptive plan pitch can report it at ReportFraud.ftc.gov or call the FTC’s Consumer Response Center at 877-382-4357. The agency adds that it will never demand money, make threats, tell anyone to transfer money or promise a prize. Whether a given website was a broker or a lead generator is often hard to tell from the page, and the FTC has not said which of the 25 companies received letters.
Already gave your details to a plan website?
A name, phone number and date of birth typed into a plan-comparison page can be sold on to sellers and scammers alike. The missed step is usually what comes after: nobody locks the credit file or the bank logins, and the first sign of trouble is a call or a charge.
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
