The Federal Trade Commission (FTC) is issuing refunds to consumers who were deceived by fake health plans sold by Benefytt Technologies. Benefytt, also known as Health Insurance Innovations, used aggressive marketing tactics and fraudulent websites to entice individuals looking for health insurance to purchase bogus policies with high monthly fees. Despite the policies offering limited coverage, Benefytt customers were often billed for additional items without their consent, even after requesting a cancellation.
The FTC’s Bureau of Consumer Protection director, Samuel Levine, highlighted the company’s fraudulent practices which resulted in millions being made from selling sham insurance to unsuspecting consumers. As part of a settlement, Benefytt agreed to pay approximately $100 million in refunds to affected customers. The agreement also prohibits former CEO Gavin Southwell and former vice president Amy Brady from marketing or selling healthcare products. Brady is also banned from engaging in telemarketing activities.
Refunds will be automatically mailed to 463,629 customers who paid Benefytt $1,000 or more between 2017 and 2022. No claim filing is required, and checks should be cashed or deposited promptly as they expire after 90 days. Customers can contact the refund administrator, Epiq Systems, at (888) 574-3126 for further assistance.
