Customers of 'sham' health plan company to get refunds
Newsy
More than 463,000 consumers should expect a check in the next two weeks if they paid Benefytt at least $1,000 between 2017 and 2022.
The Federal Trade Commission announced this week that payments will be sent to more than 463,000 consumers who were charged for "sham health plans."
The consumers will split a roughly $100 million settlement the FTC reached with Benefytt Technologies. The FTC complained that Benefytt operated "deceptive websites that targeted consumers who were searching for comprehensive health insurance plans qualified under the Affordable Care Act."
The FTC said that agents pitched Benefytt’s plans even though they were not considered qualified health plans under the Affordable Care Act. The agency added that "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."
The FTC said checks will be sent to consumers who paid Benefytt at least $1,000 between 2017 and 2022. The checks will be sent automatically over the next two weeks.
The payments come after a yearslong battle between the FTC and the company.
