FTC to return nearly $100M to buyers of Benefytt's fake health plans

The Federal Trade Commission is sending refunds to consumers it says bought into clone wellness plans falsely marketed by Benefytt Technologies arsenic broad wellness security aliases an Obamacare scheme nether nan Affordable Care Act.

Benefytt, operating nether various names specified arsenic Health Insurance Innovations, utilized fierce trading and fraudulent websites successful a strategy to lure consumers successful hunt of wellness security into buying bogus policies pinch precocious monthly fees, according to the FTC's August 2022 complaint. After buying nan bad insurance, which offered small coverage, Benefytt customers wherever often billed for further items they ne'er agreed to purchase, moreover if they had requested a cancellation.

In summation to being billed hundreds of dollars monthly, Benefytt customers often racked up immense aesculapian bills nether nan belieft they were protected by their insurance, according to nan agency.

"Benefytt pocketed millions trading sham security to seniors and different consumers looking for wellness coverage," Samuel Levine, head of nan FTC's Bureau of Consumer Protection, said successful a connection astatine nan clip the original complaint was filed. 

Benefytt agreed to salary astir $100 cardinal toward providing costumers refunds arsenic portion of nan settlement, which besides permanently bans erstwhile CEO Gavin Southwell and erstwhile vice president Amy Brady from trading aliases trading immoderate wellness care-related products. Brady is besides banned from telemarketing arsenic portion of nan settlement.

Who tin get a refund?

The FTC is sending checks to 463,629 customers who paid Benefytt $1,000 aliases much betwixt 2017 and 2022, nan agency announced connected Tuesday. Here's what to know:

• Customers who paid Benefytt $1,000 aliases much betwixt 2017 and 2022 will get immoderate money back. 
• As pinch astir FTC cases, affected customers are not required to record a claim.
• Checks will beryllium mailed automatically and should get wrong nan adjacent 2 weeks.
• Once received, refund checks should beryllium cashed aliases deposited arsenic soon arsenic imaginable arsenic they expire aft 90 days.
• Consumers tin telephone nan refund administrator, Epiq Systems, astatine (888) 574-3126, for much information.