The Federal Trade Commission (FTC) announced via a press release on March 14 that almost $100 million in refunds will be given to customers who bought fake health plans marketed by Tampa-based Benefytt Technologies.
This action follows the announcement of August 8, 2022, in which the FTC had published a press release noting that it was taking action against healthcare company Benefytt Technologies after receiving a complaint. Benefytt was accused of operating deceptive websites targeting consumers searching for health plans under the Affordable Care Act (ACA). “Consumers were led to believe they were purchasing comprehensive plans for hundreds of dollars each month that, in reality, left them with no protection in a medical emergency,” HealthLeader’s Marie Defreitas reported on April 1.
“Benefytt pocketed millions selling sham insurance to seniors and other consumers looking for health coverage,” said Samuel Levine, Director of the FTC’s Bureau of Consumer Protection, in a 2022 statement. “The company is being ordered to pay $100 million, and we’re holding its executives accountable for this fraud.”
According to the March press release, the FTC is sending checks to 463,629 consumers. “Separate orders permanently banned Benefytt’s former CEO and a former vice president of sales from selling or marketing any healthcare-related product, and the former vice president was also banned from telemarketing,” the FTC said.
