FTC Halts Nationwide Health Insurance Scam Targeting Consumers

The Federal Trade Commission (FTC) has secured a temporary court order to halt a nationwide telemarketing scheme that impersonated government agencies and major insurance providers to sell misleading health care plans. The operation allegedly duped consumers seeking comprehensive PPO insurance and those with existing coverage into purchasing ineffective plans, resulting in millions of dollars in consumer losses.

The FTC’s complaint, filed in the U.S. District Court for the Southern District of Florida, identifies six defendants operating under names including Innovative Partners, LP (doing business as Innovative Health Plan or Healthcare Plan) and American Collective. The defendants allegedly sold plans falsely described as “state issued” PPO policies that promised full coverage with no deductibles and low or no copayments. In reality, these products often consisted of limited medical discount plans and capped payouts for specific services, excluding critical coverage such as hospital stays.

The complaint further alleges that when contacting consumers who already had health insurance, the defendants misrepresented themselves as government officials or representatives of legitimate insurance carriers, pressuring consumers to pay to maintain or renew coverage. Consumers who purchased these plans discovered deficiencies only after attempting to use them, facing unexpected medical expenses or delaying care due to inadequate coverage. Attempts to cancel the plans were often ignored, while monthly charges continued without informed consent.

The FTC alleges multiple violations including deceptive telemarketing practices, unauthorized recurring charges, false government impersonation, and misuse of consumer financial information. The defendants are charged with infringing the FTC Act, Telemarketing Sales Rule, Impersonation Rule, and Gramm-Leach-Bliley Act. Following the complaint, the court granted a temporary restraining order to stop the defendants’ activities and freeze assets.

FTC Chairman Andrew N. Ferguson emphasized the agency’s focus on combating unlawful practices that increase healthcare costs and harm consumers, citing the recent creation of a Healthcare Task Force to address such issues. He stated the FTC will continue to use all available enforcement tools to protect consumers from fraudulent health care schemes.

Why it matters

This enforcement action underscores the ongoing risks consumers face from deceptive marketing in the health insurance sector. Misleading sales tactics contribute to inflated medical costs and compromise access to authentic health care coverage. Stopping such fraud helps protect consumers’ financial security and supports the integrity of the health insurance marketplace.

Background

The FTC has a history of addressing scams involving fake or inadequate health insurance plans, which frequently prey on vulnerable or uninformed consumers. The creation of the Healthcare Task Force in March 2026 signals an intensified regulatory focus on fraudulent actors undermining health insurance markets nationwide.

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