Health Insurance Marketplace open enrollment runs from Nov. 1 to Jan. 15, and the Federal Trade Commission says the ads are already flooding in. Some of them promise comprehensive coverage but sell something far thinner, such as a medical discount card or a plan with limited benefits. The FTC’s advice is to start at HealthCare.gov or call the Marketplace Call Center at 1-800-318-2596.
The agency made the warning in a consumer alert on Oct. 29. It came out the same day the FTC told 25 companies to clean up how they market health plans.
What the FTC says to watch for
The FTC’s consumer alert says some ads and phone pitches are misleading. They may promise “comprehensive health insurance” but actually offer limited benefits. Others are ads for medical discount cards, which the agency says are not health insurance.
Some ads also look as if they come from the government or from a well-known insurer when they are really from impersonators. The FTC says to watch for scam ads, phone pitches and texts, including those in paid search results and on social media. A plan that does not provide the coverage advertised is the common thread.
The FTC’s point is that the label on the ad and the product behind it can be two different things. The difference matters at the doctor’s office and the hospital. A discount card may knock a price down at certain providers, but it does not pay a claim. A limited-benefit plan pays only for the things it lists, and a person who thought they bought comprehensive coverage can find out the hard way after an expensive visit.
The FTC does not give a dollar figure for what these products cost or what victims lose. Its press release says only that the marketers it contacted include firms advertising Marketplace coverage and products such as limited indemnity plans and medical discount programs.
That is the question for anyone looking at an ad right now: is this real insurance, or is it a card or a limited plan? A real Marketplace plan is bought at HealthCare.gov, and the FTC says that is where shoppers should begin.
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The letters to 25 companies
On the same day as the alert, the FTC announced that its staff sent letters to 25 companies that market or generate sales leads for health care plans. The agency expects to send more on a rolling basis.
The letters list claims that may violate the law. They include misrepresenting a plan’s benefits or limits, calling a plan “major or comprehensive medical health insurance” when it is not, misstating what it costs, and falsely promising free offers, cash rewards or rebates to people who enroll.
Christopher Mufarrige, director of the FTC’s Bureau of Consumer Protection, said, “Making healthcare more transparent and affordable is a top priority for the FTC.” He added that open enrollment “is not an invitation to misrepresent what their plans actually cover.” The letters do not accuse any recipient of breaking the law. They ask the companies to review their advertising, and the FTC says it is monitoring the market.
How to start safely, and who can help
The FTC says to begin at HealthCare.gov or call the Marketplace Call Center at 1-800-318-2596. The FTC’s Sept. 28 alert on open enrollment adds more detail on how scammers get found.
That alert says scammers and dishonest businesses sometimes pay to appear at the top of search results. Fake sites may use web addresses that resemble government sites, with official-looking logos and keywords. Some ads lead to plans that are not real health insurance, or to schemes that risk medical identity theft.
Its tips are practical. Type the official website name directly into the browser instead of clicking an ad. Look for “Ad” or “Sponsored” labels, scroll past paid results and confirm the site ends in .gov. Free help is available from a State Health Insurance Assistance Program, a Senior Medicare Patrol, or the “Find Local Help” tool on HealthCare.gov.
For Medicare, the FTC lists Medicare.gov and the phone number 800-633-4227.
Robocalls and where to report
The FTC adds that prerecorded robocalls marketing health insurance are illegal. A caller using one is likely a scammer, or someone a consumer may not want to do business with.
People who see a misleading ad or get an illegal robocall can report it to the FTC at ReportFraud.ftc.gov. The September alert also says to report suspected scams to a state attorney general, and to report Medicare fraud at Medicare.gov or by calling 800-633-4227.
The FTC does not say how many people have been hurt this season, and it names none of the companies behind the ads. Its warning rests on the pattern the staff saw in ads, phone pitches and texts, and it runs for as long as the Jan. 15 enrollment window stays open.
Already gave a health-plan caller personal details?
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This article was produced with AI assistance and edited for accuracy against the sources linked above.
