Nearly $100 million in refunds are being distributed by the Federal Trade Commission (FTC) to consumers who were charged for deceptive health plans marketed by Benefytt Technologies. In August 2022, the FTC filed a complaint detailing how Benefytt and its partners operated misleading websites that targeted consumers seeking comprehensive health insurance plans compliant with the Affordable Care Act. Sales agents misrepresented Benefytt’s plans as ACA-qualified even though they were not, leaving consumers vulnerable in case of a medical emergency.
As part of the settlement, Benefytt has agreed to pay $100 million for refunds and is now prohibited from making false claims or charging unauthorized fees. The former CEO and a former vice president of sales have been permanently banned from selling or marketing healthcare-related products, with the former vice president also banned from telemarketing. The refunds, totaling 463,629 checks, are being sent by the FTC to consumers who were affected by this scheme. Recipients are advised to cash their checks within 90 days, as indicated. For any questions regarding payments, consumers can contact the refund administrator, Epiq Systems, or visit the FTC website for more information on the refund process. It is important to note that the FTC will never ask for payment or account information to provide a refund.
The FTC’s refund data dashboard offers a state-by-state breakdown of refunds in cases like this one. In 2023, FTC actions resulted in $324 million in refunds to consumers nationwide, showcasing the Commission’s commitment to holding companies accountable for deceptive practices and providing restitution to affected consumers.
