WASHINGTON, D.C. — The Federal Trade Commission (FTC) has reached a combined $145 million settlement with Assurance IQ, LLC and MediaAlpha, Inc., resolving allegations that the companies misled millions of consumers shopping for comprehensive health insurance.
In two separate enforcement actions, the FTC charged that both firms engaged in deceptive practices that caused consumers to purchase plans with limited coverage, while inundating them with telemarketing and robocalls. The settlements will fund refunds for affected consumers and impose strict prohibitions on future misconduct.
Christopher Mufarrige, Director of the Bureau of Consumer Protection, emphasized the significance of the cases: “Coherently and systematically addressing unlawful lead generation is a priority for the FTC. That’s especially so in connection to health insurance, one of the most expensive and important products consumers buy to protect themselves and their families. Consumers should receive accurate, truthful, and non-misleading information about the coverage insurance provides.”
Assurance IQ
Seattle-based Assurance IQ, founded by Michael Rowell and Michael Paulus, marketed short-term medical and limited benefit indemnity plans—often bundled with supplemental products—using telemarketing pitches that, according to the FTC, misrepresented costs, benefits, and coverage.
The agency alleges Assurance falsely claimed the plans covered preexisting conditions, imposed no benefit caps, offered substantial provider network discounts, and included additional products at no extra cost. Consumers were also allegedly billed without providing express informed consent.
The proposed court order imposes a $100 million judgment, requires Assurance to substantiate all future claims with reliable evidence, mandates clear disclosure of plan costs and limitations, and prohibits billing without explicit consent. The company is also barred from violating the Telemarketing Sales Rule (TSR).
MediaAlpha
Los Angeles-based MediaAlpha and its subsidiary QuoteLab operate lead-generation websites that, according to the FTC, used deceptive domain names like “ObamacarePlans.com” to give the false impression of government affiliation. The company allegedly promoted a fictitious “Health Insurance Give Back Program” through hired actors, celebrities, and even a paid physician in scripted segments claiming consumers could secure plans “for $1 a day.”
In 2024 alone, MediaAlpha reportedly sold about 119 million consumer leads, many to telemarketers who called individuals on the Do Not Call Registry. These calls often made false promises of low-cost, comprehensive ACA-compliant coverage.
The $45 million judgment against MediaAlpha requires the company to surrender deceptive web domains, implement rigorous compliance monitoring, and clearly disclose when its sites are unaffiliated with the government. It also bars misrepresentations about costs or features, and requires express informed consent before collecting, selling, or disclosing personal data.
Both settlements, approved unanimously by the Commission, were filed in federal district courts in Washington state and California. The FTC’s actions highlight ongoing efforts to combat deceptive marketing in the health insurance marketplace, where misleading claims can have costly consequences for consumers.
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