On January 23, 2026, the Federal Trade Commission (FTC) successfully obtained a temporary court order to halt the operations of several companies accused of running a deceptive telemarketing scheme related to health care plans. The action, taken by a U.S. district court in Florida, addresses allegations that these entities have caused consumers to suffer losses amounting to tens of millions of dollars through misleading marketing practices.
According to the FTC’s complaint, the primary defendant, Top Healthcare Options Insurance Agency, Inc., along with 11 related parties, is accused of exploiting consumers who are searching for comprehensive health insurance. The FTC claims that these companies mislead potential buyers into believing they are purchasing legitimate health insurance plans when, in fact, the products offered do not provide the promised coverage, leaving consumers vulnerable to significant medical expenses.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized the critical nature of health insurance as a significant financial commitment for families. He stated, “Health insurance is one of the most important and costly purchases consumers buy for themselves and their families.” Mufarrige highlighted the necessity for consumers to have all relevant information to make informed decisions, particularly during a time when affordability is a pressing concern.
The complaint outlines that consumers are often led to websites that falsely present themselves as sources for comprehensive health insurance plans, featuring terms such as “Affordable Care Act Plans” and “Obamacare Health Insurance Carriers.” These sites are allegedly designed to serve as lead generators, collecting personal information from users and selling it to the defendants or their affiliates for marketing purposes.
When contacting consumers, the defendants reportedly redirect the conversation away from genuine comprehensive health insurance options, promoting their own limited benefit plans. These alternatives provide significantly less coverage, which can result in thousands of dollars in out-of-pocket medical costs for the buyers.
The FTC’s allegations assert that the defendants have falsely claimed that their limited benefits plans are comparable to comprehensive health insurance. They allegedly misrepresent these plans as preferred provider organization (PPO) options and claim that they provide adequate coverage for specific medical needs, including prescriptions and particular medical services. Furthermore, they are accused of suggesting that consumers would only be responsible for minimal costs related to certain medical services through copays or deductibles.
The complaint charges the defendants with violations of the FTC’s Telemarketing Sales Rule and the FTC Act. In addition to seeking refunds for affected consumers, the FTC’s legal action aims to provide additional relief for those impacted by these practices. The court’s temporary restraining order against the defendants is a critical step in addressing these alleged deceptive practices.
The FTC continues to underscore the importance of protecting consumers from misleading marketing tactics, particularly in the health insurance sector, where the stakes can be exceptionally high. As investigations proceed, the agency reiterates its commitment to safeguarding consumers in their pursuit of reliable and comprehensive health care options.