Just two days before the start of the open enrollment period for Obamacare health insurance, the Federal Trade Commission (FTC) sent warning letters to 25 companies that market health plans or attract clients, regarding the risk of using deceptive advertising to lure consumers.
The measure, announced this Thursday, October 29, seeks to prevent millions of Americans who need to purchase or renew their health insurance from ending up with products that do not provide the promised coverage.
The warnings are directed at companies that promote insurance from the Affordable Care Act (ACA) marketplace, as well as limited coverage plans and medical discount programs.
The FTC clarified that the letters do not constitute sanctions nor do they imply that the companies have committed infractions. They are a preventive warning for them to review their advertisements and comply with consumer protection laws.
Christopher Mufarrige, director of the FTC's Office of Consumer Protection, noted that Americans, who are already facing rising medical costs, should not have to worry about finding out that their insurance coverage is not what was promised to them.
The agency identified four types of advertising claims that may violate the law: misrepresenting the benefits or limitations of a plan; presenting a product with limited coverage as if it were comprehensive health insurance; inaccurately representing the actual costs; and falsely promising free offers, cash rebates, or incentives for signing up.
The FTC also warned that some advertisements mimic the appearance of government portals or reputable insurers to gain consumer trust, and reminded that making automated calls with pre-recorded messages to market health insurance is illegal.
For those seeking coverage, the distinction between products is essential: a comprehensive insurance from the ACA Market covers hospitalization, medications, and preventive care with federal protections.
However, a limited indemnity plan only pays fixed amounts for specific services and may leave significant expenses uncovered; and a medical discount card is not insurance, but rather a program that offers negotiated discounts on certain services without real coverage.
The open enrollment at HealthCare.gov for 2027 coverage starts on November 1 and runs until January 15. Those who enroll before December 15 will have coverage starting January 1. The FTC recommends visiting only that official portal or calling 1-800-318-2596 before sharing personal information or making any payments.
Insurance agents will also be able to send their clients an authorization link to assist them in renewing their policy.
For the next year, only permanent residents and citizens, as well as some Cuban and Haitian immigrants, will be able to access the Obamacare subsidies.
This notice is part of an ongoing history of legal actions taken by the agency in this sector. In February 2024, the FTC obtained a $195 million judgment against Simple Health Plans for selling discount plans as if they were comprehensive insurance.
In August 2025, Assurance IQ and MediaAlpha agreed to pay $145 million for misleading consumers seeking comprehensive coverage. And in January 2026, a federal court halted the operations of Top Healthcare Options Insurance Agency due to deceptive telemarketing that resulted in losses of tens of millions of dollars.
The context is especially relevant this year: the number of participants in the Market fell from 22.1 million in 2025 to 19.2 million in February 2026, making it more urgent for consumers to know how to distinguish legitimate products from offers that promise more than they deliver. Anyone who detects a misleading advertisement or receives an illegal robocall can report it at ReportFraud.ftc.gov.
"The open enrollment is not an invitation to misrepresent what the plans actually cover," Mufarrige warned.
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