The Federal Trade Commission (FTC) has sent warning letters to 21 companies that conduct marketing outreach or generate sales leads for health plans amid a busy window for open enrollment.
The letters do not accuse the recipients of any wrongdoing but warn against practices that could get them into trouble. For example, they cannot misrepresent the benefits included in a plan or misrepresent the costs associated with a certain plan.
The agency also warns against falsely telling consumers that a plan has "major or comprehensive" coverage or claiming inaccurately that enrollees will be eligible for cash rewards, rebates, free offers or other bonus incentives.
The letter (PDF) also cites actions the commission has taken over these practices against multiple companies including Simple Health, Benefytt Technologies, the Partners in Healthcare Association and the Consumer Health Benefits Association.
The FTC urged the companies to "conduct a comprehensive review" of marketing or advertising practices to ensure they're not being deceptive to consumers.
"FTC staff is not singling out your company or suggesting that you have engaged in illegal conduct," according to the letter. "We are widely distributing similar letters to other companies engaged in marketing and lead generation efforts related to health insurance and healthcare-related products."
The letters are going out at the height of open enrollment on the Affordable Care Act's exchanges. The agency said it is "closely monitoring this marketplace" for evidence of wrongdoing. In the letter, the agency said it will take action if necessary.
“It is critical for consumers’ health and financial well-being that marketers of health plans be honest about the plans they and their partners are offering,” said Samuel Levine, director of the FTC’s Bureau of Consumer Protection, in a press release.
“The FTC has been watching this important sector closely, especially during open enrollment season, and these warning letters put companies on notice that unlawfully marketing or advertising health plans to consumers can result in serious legal consequences," Levine said.