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Need ACA-compliant health insurance coverage? Start at Healthcare.gov

Looking for health insurance can be confusing. But if you run across a company that deliberately tricks you into signing up for insurance or health products that don’t deliver (and are hard to cancel), it’s even harder.

According to the FTC, Benefytt Technologies, Inc. and its partners did just that — tricking people into believing they could get Affordable Care Act (ACA)-compliant health insurance, or health products with the same benefits as ACA insurance.

But wait, there’s more. The FTC says Benefytt also often charged people separate fees for add-on health products…which people didn’t know about or want. And hadn’t agreed to buy. And if they called to cancel the not-really-ACA-compliant health insurance or product, many still kept getting bills for those add-on products.

So, what if you bought “insurance” from Benefytt and now need a real, ACA-compliant plan? Well, as part of the settlement, Benefytt must tell its customers how to cancel their plan — and tell customers how to take advantage of a special enrollment period to sign up for real, ACA-qualified health insurance. So, if you know someone who has a Benefytt product, please pass this news on to them.

Before signing up for health insurance:

  • Compare plans, coverage, and prices at a trusted source. HealthCare.gov and state marketplaces are the first stop for information about comprehensive, ACA-compliant health insurance coverage.
  • Research any company offering health coverage or products. Search online for the name of the company plus “complaint,” “scam,” or “fraud.” Read reviews and see what others have to say. Check with your state insurance commissioner’s office to find out if there are complaints.
  • Ask for info in writing. Is the plan really comprehensive health insurance? Does it offer the coverage you need? What’s the total cost? Are there caps or limitations to coverage?

If you spotted a health care scam, tell the FTC at ReportFraud.ftc.gov. Then, report it to your state attorney’s general office.

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5 Comments


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The purpose of this blog and its comments section is to inform readers about Federal Trade Commission activity, and share information to help them avoid, report, and recover from fraud, scams, and bad business practices. Your thoughts, ideas, and concerns are welcome, and we encourage comments. But keep in mind, this is a moderated blog. We review all comments before they are posted, and we won’t post comments that don’t comply with our commenting policy. We expect commenters to treat each other and the blog writers with respect.

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  • We won’t post comments that include personal information, like Social Security numbers, account numbers, home addresses, and email addresses. To file a detailed report about a scam, go to ReportFraud.ftc.gov.

We don't edit comments to remove objectionable content, so please ensure that your comment contains none of the above. The comments posted on this blog become part of the public domain. To protect your privacy and the privacy of other people, please do not include personal information. Opinions in comments that appear in this blog belong to the individuals who expressed them. They do not belong to or represent views of the Federal Trade Commission.

Elaine
August 11, 2022

Good too know had trouble in the beginning but notify Medicare and they took care of it

Steve L.
September 02, 2022

These messages are always welcome and informative. My wife and I, now in our 70s worked for the same city government employer, and we both retired with health benefits. This has greatly simplified our lives. Our insurance premiums are deducted from our pension checks. Every 5 to 10 years our employer changes insurance companies, but coverage never lapses. I appreciate that our employer benefits department has lifted the burden of choosing a health insurance plan for us.

Clifton Sandifer, Jr
August 11, 2022

This short report can help those searching for quality and comprehensive health insurance take new precautions when choosing coverage and providers.

Carlos Morcate
August 11, 2022

Health insurance is not about health, but about taking your money to enrich their managers and investors. The privatized Medicare ADVANTAGE Plans are one of their instruments.

Pokey
August 11, 2022

its starting already. ANd its NOT EVEN OPEN ENROLLMENT! I cant STAND ALL THE PHONE CALLS AND SCAMMERS. WHY arent you curtailing the ROBOCALLS? Instead of telling us about these scams LATER ON! AFTER THEY ALREADY HARASSED US FOR MONTHS.
WHAT good does it do to report them? NONE it seems. B/c it feels like FCC could care LESS that we are awakened starting at 5 am on west coast b.c they CANT TELL TIME! They dont stop till 8-20 PM! ITS RIDICULOUS! and causing a LOT OF OUTRAGE and ANGER. Dont we have enought of that already? This is stacking the deck against INNOCENT VICTIMS and you do NOTHING but let us know this is the New scam. REALLY? THeyve already been calling me with MEDICARE SCAMS DAILY x 3 months! And thank you for fixing the captca