Two health insurance brokers agreed to pay a combined $145 million to resolve allegations from the Federal Trade Commission that they misled millions of consumers seeking to buy comprehensive health insurance.
Assurance IQ will pay $100 million to settle allegations that it used telemarketing to mislead consumers into purchasing short-term medical and limited-benefit plans bundled with add-ons, according to an Aug. 7 FTC news release. The company was also accused of unfairly charging consumers without first getting their express informed consent.
MediaAlpha will pay $45 million to settle allegations it used advertisements and websites claiming to provide health insurance quotes to collect information from consumers looking for insurance so the data could be sold to telemarketers. In 2024, the company sold approximately 119 million leads about consumers, according to the release. The company attracted consumers to its lead-generation websites using misleading domains like “ObamacarePlans.com.” It also hired actors and celebrities to promote a nonexistent government “Health Insurance Give Back Program” to drive consumer traffic to its websites.
The $145 million involved in the settlements will be used to provide refunds to affected consumers, according to the release.
