FTC Sends Nearly $100 Million in Refunds to Consumers Harmed by Benefytt Technologies’ Sham Health Plans

The Federal Trade Commission is sending nearly $100 million in refunds to consumers who were charged for sham health plans marketed by Benefytt Technologies.

Image

According to the FTC’s August 2022 complaint, Benefytt and its third-party partners operated a series of deceptive websites that targeted consumers who were searching for comprehensive health insurance plans qualified under the Affordable Care Act. Sales agents pitched Benefytt’s sham plans even though they were not ACA-qualified health plans and lacked key elements. Consumers were led to believe that they were buying comprehensive health insurance and were then charged hundreds of dollars per month for Benefytt products and services that often left them unprotected in a medical catastrophe.

Benefytt agreed to a settlement that required the company to pay $100 million to provide refunds and prohibited the company from lying about its products or charging illegal junk fees. Separate orders permanently banned Benefytt’s former CEO and a former vice president of sales from selling or marketing any healthcare-related product, and the former vice president was also banned from telemarketing.

The FTC is sending checks to 463,629 consumers. Recipients should cash their checks within 90 days, as indicated on the check. Consumers who have questions about their payment should contact the refund administrator, Epiq Systems, at 888-574-3126 or visit the FTC website to view frequently asked questions about the refund process. The Commission never requires people to pay money or provide account information to get a refund.

The Commission’s interactive dashboards for refund data provide a state-by-state breakdown of refunds in FTC cases. In 2023, FTC actions led to $324 million in refunds to consumers across the country.