FTC Warns of Misleading Health Insurance Ads and Calls

Health insurance ads and phone pitches may promise broad coverage while offering only limited benefits—or a discount card that is not insurance. The Federal Trade Commission warns that other promotions may impersonate government agencies or familiar insurance companies to gain your trust during open enrollment.

For US households comparing plans, the safest starting point is HealthCare.gov, not a paid search result, social media ad, unexpected text or unsolicited call.

What happened

The FTC sent letters to businesses and marketers that promote health insurance plans and related products, reminding them that their advertising must follow the law. According to the agency, consumers may encounter misleading promotions across search results, social media, phone calls and text messages.

Some promotions describe a product as comprehensive health insurance even though its benefits are limited. Others sell medical discount cards, which are not health insurance. Impersonators may also design an ad or sales pitch to look as if it came from the government or a well-known insurer.

The FTC also says prerecorded robocalls that market health insurance are illegal. An unexpected recorded sales call is therefore a strong reason to distrust the offer and avoid doing business with the caller.

Who is affected

Anyone shopping for individual or family health coverage during the Health Insurance Marketplace open-enrollment period, which runs from November 1 through January 15, could encounter these promotions. The warning is especially relevant to people responding to online ads, paid search listings, social media posts, texts or unsolicited calls.

The FTC did not identify particular insurers, marketers, websites or phone numbers in its consumer alert. It also did not disclose how many people have lost money or enrolled in plans with less coverage than they expected.

What to do now

1. Begin at the official Marketplace. Type HealthCare.gov directly into your browser instead of opening an insurance link from an ad, text message or social media post.

2. Use the official phone number if you want help. Call the Marketplace Call Center at 1-800-318-2596. Do not rely on a number supplied by an unexpected caller or advertisement.

3. Confirm what the product actually is. Before enrolling or paying, check whether the offer is health insurance, a limited-benefit plan or only a medical discount card. Do not assume that words such as “comprehensive” accurately describe the coverage.

4. Treat prerecorded sales calls as a warning sign. If a recording is marketing health insurance, end the call. The FTC says this kind of robocall is illegal and may come from a scammer or an operator you should avoid.

5. Be cautious with familiar names and official-looking designs. An ad that resembles a government page or a major insurance company may still be an impersonation. Return to HealthCare.gov or call the official Marketplace number independently.

6. Report suspicious promotions. If you receive an illegal robocall or find a misleading health insurance ad, submit a report at ReportFraud.ftc.gov.