The Federal Trade Commission (FTC) has issued warning letters to 25 companies that market health insurance plans or generate leads for such products, citing concerns over misleading advertising practices. These warnings come as the open enrollment period for health insurance is underway, a time when individuals are actively seeking coverage, making them more vulnerable to deceptive offers.

The FTC's letters do not accuse the companies of wrongdoing but serve as a reminder of advertising laws and indicate ongoing market monitoring. The agency is particularly focused on advertisements that misrepresent benefits, obscure costs, or promote limited-benefit products as comprehensive coverage. Offers promising cash rewards or freebies that may never materialize are also under scrutiny.

Scammers often exploit online searches for affordable health insurance by using advertisements that mimic legitimate government websites or familiar insurance company branding. These deceptive ads can lead consumers to fake websites designed to collect personal information or steer them toward inadequate insurance plans. The FTC warns that sponsored search results, while appearing official, offer no guarantee of a seller's trustworthiness.

A significant concern involves products that appear to offer full medical coverage but provide only limited protection. Medical discount programs, which offer access to discounted services rather than actual insurance, and fixed indemnity plans, which pay a set amount for specific services, can leave individuals responsible for substantial medical bills.

For comparison, plans sold through the official Affordable Care Act (ACA) Marketplace are required to cover essential health benefits, including emergency services and hospitalization, and cannot deny coverage for pre-existing conditions. Consumers can verify these protections on HealthCare.gov.

Illegal prerecorded telemarketing calls promoting health insurance are also a concern. Scammers can spoof caller ID information to appear as legitimate organizations. The FTC advises skepticism towards unsolicited recorded insurance sales calls and recommends hanging up and contacting insurers directly through independently verified phone numbers.

To avoid health insurance scams, consumers are advised to:

  • Start their search for ACA Marketplace plans at HealthCare.gov or by calling the official Marketplace number.
  • Exercise caution with sponsored search results, verifying website addresses and looking for suspicious imitation branding.
  • Request a Summary of Benefits and Coverage (SBC) in writing to understand plan details, deductibles, and out-of-pocket costs.
  • Be wary of promises for cash rewards or incentives, understanding that legitimate financial assistance is based on eligibility rules.
  • Verify the legitimacy and licensing of any insurance company or agent, especially for plans sold outside the official Marketplace, by contacting the state's insurance department.
  • Protect personal information, such as Social Security numbers and banking details, by only providing it to verified entities.
  • Use strong antivirus software and enable two-factor authentication for online accounts to enhance security.
  • Consider identity theft protection services, particularly if sensitive information has been compromised.

The Health Insurance Marketplace for 2027 coverage began November 1, 2026, and runs through January 15, 2027, with a December 15, 2026, deadline for coverage starting January 1. Medicare's open enrollment is from October 15 to December 7, 2026. Knowing these official dates can help identify urgent-seeming deadlines promoted by scammers.

If individuals have already responded to a suspicious offer or shared information, they are advised to contact their bank or credit card company, verify their coverage directly with the insurer, and visit IdentityTheft.gov for guidance. Reports of misleading ads and robocalls can be filed with the FTC at ReportFraud.ftc.gov.