FTC Distributes Almost $100 Million in Reimbursements to Consumers Affected by Benefytt Technologies’ Deceptive Health Plans


FTC Distributes Almost $100 Million in Reimbursements to Consumers Affected by Benefytt Technologies’ Deceptive Health Plans

The Federal Trade Commission is distributing nearly $100 million in refunds to consumers who were charged for fraudulent health plans promoted by Benefytt Technologies. The FTC’s complaint from August 2022 revealed that Benefytt and its partners operated misleading websites that targeted individuals seeking comprehensive health insurance plans compliant with the Affordable Care Act. Despite not meeting ACA qualifications and lacking essential features, sales agents promoted Benefytt’s deceptive plans to consumers who ended up paying hundreds of dollars per month for inadequate coverage. The settlement with Benefytt required the company to pay $100 million for refunds and prohibited them from making false claims about their products or charging illegal fees.

Additionally, former executives of Benefytt were permanently banned from selling or marketing any healthcare-related products, with one individual also prohibited from telemarketing. The FTC is issuing checks to over 463,000 consumers, who are advised to cash them within 90 days as mentioned on the checks. Recipients with inquiries about their refund can contact the refund administrator, Epiq Systems, at 888-574-3126 or visit the FTC website for FAQs about the process. It’s important to note that the FTC never requests payment or account information from individuals to receive a refund.

The Commission’s refund data dashboards offer a breakdown of refunds by state in FTC cases. In 2023, FTC actions resulted in $324 million in refunds for consumers nationwide.

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