FTC to send nearly $100 million in refunds to customers of Benefytt's fake health plans

The Federal Trade Commission is sending refunds to consumers it says bought into fake health plans falsely marketed by Benefytt Technologies as comprehensive health insurance or an Obamacare plan under the Affordable Care Act.

Benefytt, operating under various names such as Health Insurance Innovations, used aggressive marketing and fraudulent websites in a scheme to lure consumers in search of health insurance into buying bogus policies with high monthly fees, according to the FTC's August 2022 complaint. After buying the bad insurance, which offered little coverage, Benefytt customers where often billed for additional items they never agreed to purchase, even if they had requested a cancellation.

In addition to being billed hundreds of dollars monthly, Benefytt customers often racked up huge medical bills under the belieft they were protected by their insurance, according to the agency.