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FTC sues to halt alleged deceptive health insurance scheme The agency says products were not even insurance policies By Mark Huffman of ConsumerAffairs April 29, 2026 The FTC alleges a nationwide telemarketing scheme deceived consumers into buying fake or inadequate health insurance plans. A federal court has temporarily halted the operation and frozen its activities. Regulators say victims paid millions for coverage that often failed to deliver promised benefits. The Federal Trade Commission (FTC) has filed a lawsuit to stop what it describes as a widespread and deceptive health care scheme that allegedly duped consumers into purchasing inadequate insurance products while posing as legitimate providers. According to the FTC, a U.S. District Court in Florida has already issued a temporary restraining order halting the operation, which regulators say impersonated government agencies and well-known insurance companies to sell bogus health plans nationwide. The agency alleges that, since at least early 2023, six defendants operated a telemarketing scheme targeting people seeking comprehensive health coverage. Sales agents allegedly told consumers they were buying state-issued PPO plans with low or no deductibles and full coverage claims the FTC says were false. Not insurance In many cases, the products sold were not insurance at all. Instead, they consisted of limited medical discount plans or supplemental products with capped payouts, and in some instances excluded major services like hospital care. The FTC al

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