FTC Warns of Misleading Health Insurance Ads as Marketplace Open Enrollment Begins November 1
On October 29 the Federal Trade Commission warned about misleading health insurance ads as open enrollment for the Health Insurance Marketplace begins November 1. The agency sent warning letters to 25 companies and reminded people that the Marketplace is separate from Medicare, with different websites and sign up periods.
A new shopping season for health insurance is about to begin, and federal regulators are warning people to watch out for misleading ads. On Thursday, October 29, the Federal Trade Commission, known as the FTC, posted a consumer alert about deceptive health plan ads, timed to the start of open enrollment for the Health Insurance Marketplace. That Marketplace, sometimes called the Affordable Care Act Marketplace, opens for 2027 coverage on Sunday, November 1, and runs through January 15.
The FTC said that during open enrollment, misleading ads tend to multiply. Some promise full health coverage but deliver very little. Others push medical discount cards that are not insurance at all. Some pose as the government or a well known insurance company to win your trust. The agency said it sent warning letters to 25 companies that market health plans or generate sales leads, reminding them not to misrepresent what their plans actually cover.
The FTC also reminded people that it is against the law to send prerecorded robocalls that market health insurance. So a recorded sales call about a health plan is a warning sign on its own, and it likely comes from a scammer or a business you would not want to deal with.
It helps to know that this alert is about the Health Insurance Marketplace, not Medicare. The two programs are different, with different websites and different sign up periods. If you have Medicare, your open enrollment runs through December 7, and the official help is at Medicare.gov or 1-800-MEDICARE. If you buy coverage through the Marketplace, the official site is HealthCare.gov and the Marketplace Call Center is 1-800-318-2596. Government websites end in dot gov.
A few steady habits lower the risk. Type the official web address into your browser yourself instead of clicking an ad or a link, because ads at the top of search results can be fakes dressed up with official looking logos. Treat any surprise call, text, or email about coverage with caution, even if the caller ID or logo looks right, because those can be faked. Never give your Social Security number, Medicare number, or bank details to someone who contacts you first. You can report a suspected scam at ReportFraud.ftc.gov.
Go Deeper
What is this warning about?
The FTC warned on October 29 about misleading health plan ads as open enrollment for the Health Insurance Marketplace begins November 1.
Is this the same as Medicare?
No. The Marketplace and Medicare are different programs with different websites and sign up periods. Medicare open enrollment runs through December 7.
What tricks should I watch for?
Ads that promise full coverage but deliver little, medical discount cards sold as insurance, and ads that pose as the government or a known insurer.
Are robocalls a red flag?
Yes. The FTC says it is against the law to send prerecorded robocalls that market health insurance, so such a call is a warning sign.
Where do I get real help?
For the Marketplace, use HealthCare.gov or 1-800-318-2596. For Medicare, use Medicare.gov or 1-800-MEDICARE. Report scams at ReportFraud.ftc.gov.
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