Benefytt Technologies, also known as Health Insurance Innovations, has been scammed millions of dollars by selling fake health plans to seniors and other consumers in search of affordable healthcare. The Federal Trade Commission (FTC) is issuing refunds to the affected customers after discovering that Benefytt falsely marketed its policies as comprehensive health insurance or an Obamacare plan under the Affordable Care Act.
The FTC found that Benefytt used aggressive marketing tactics and fraudulent websites to trick consumers into purchasing fraudulent policies with high monthly fees. These policies offered little coverage and often resulted in consumers being billed for additional items they never agreed to purchase, even after requesting a cancellation. In addition to monthly fees, Benefytt customers often incurred substantial medical bills under the assumption that they were protected by their insurance, as per the agency’s findings.
The settlement includes a permanent ban on former CEO Gavin Southwell and former vice president Amy Brady from selling or marketing any health care-related products, with Brady also being banned from engaging in telemarketing activities. As part of the settlement, Benefytt agreed to pay approximately $100 million to provide refunds to affected customers.
The FTC is sending refund checks to 463,629 customers who paid Benefytt $1,000 or more between 2017 and 2022 without requiring them to file a claim. Refund checks will be automatically mailed and are expected to arrive within the next two weeks. Customers are advised to cash or deposit the checks promptly as they expire after 90 days. For additional information, consumers can contact the refund administrator, Epiq Systems, at (888) 574-3126.
