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Customers of 'sham' health plan company to get refunds

More than 463,000 consumers should expect a check in the next two weeks if they paid Benefytt at least $1,000 between 2017 and 2022.
Customers of 'sham' health plan company to get refunds
Posted at 1:11 PM, Mar 19, 2024

The Federal Trade Commission announced this week that payments will be sent to more than 463,000 consumers who were charged for "sham health plans."

The consumers will split a roughly $100 million settlement the FTC reached with Benefytt Technologies. The FTC complained that Benefytt operated "deceptive websites that targeted consumers who were searching for comprehensive health insurance plans qualified under the Affordable Care Act."

The FTC said that agents pitched Benefytt’s plans even though they were not considered qualified health plans under the Affordable Care Act. The agency added that "consumers were led to believe that they were buying comprehensive health insurance and were then charged hundreds of dollars per month for Benefytt products and services that often left them unprotected in a medical catastrophe."

The FTC said checks will be sent to consumers who paid Benefytt at least $1,000 between 2017 and 2022. The checks will be sent automatically over the next two weeks. 

SEE MORE: FTC issuing refunds to scammed student loan borrowers

The payments come after a yearslong battle between the FTC and the company. 

In a 2022 court filing, Madison Dearborn Partners maintained a controlling interest in Benefytt Technologies. Last year, Blue Lantern Health LLC launched as a "rebranded organization following the successful restructuring of predecessor company Benefytt Technologies, Inc." The company added that it "remains under the management of its existing leadership team and is majority owned by funds affiliated with Madison Dearborn Partners."

A message has been left for Blue Lantern Health LLC for its reaction to the settlement. 

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