On January 23, 2026, the Federal Trade Commission (FTC) obtained a temporary court order to cease the operations of multiple companies and individuals accused of conducting a deceptive telemarketing scheme. This operation allegedly exploited consumers seeking comprehensive health insurance, resulting in significant financial harm estimated in the tens of millions of dollars.
The U.S. District Court in Florida responded to the FTC’s request, alleging that Top Healthcare Options Insurance Agency, Inc. and eleven related defendants misled consumers into believing they were purchasing legitimate health insurance plans. According to the FTC’s complaint, these entities primarily target individuals searching online for comprehensive health coverage. However, the plans marketed by the defendants do not provide the promised benefits, leaving buyers vulnerable to high medical expenses.
Christopher Mufarrige, Director of the FTC’s Bureau of Consumer Protection, emphasized the importance of health insurance as a critical and often costly purchase. He stated, “Health insurance is one of the most important and costly purchases consumers buy for themselves and their families. This makes ensuring they have all the information necessary to make informed choices even more important.”
The FTC’s complaint outlines that the defendants operated websites that seemingly offer affordable health plans, including terms such as “Affordable Care Act Plans,” “Obamacare Health Insurance Carriers,” and “2024 Obama Care Plans.” In reality, these sites are purportedly designed as lead generators. They collect personal information from consumers and subsequently sell this data to the defendants or their partners for telemarketing purposes.
Upon contacting consumers, the defendants reportedly shifted their focus from comprehensive health insurance to promoting plans that provide significantly less coverage. This tactic leaves buyers exposed to substantial out-of-pocket medical costs, often amounting to thousands of dollars.
The allegations include false representations regarding the limited benefits plans and medical discount memberships being sold. The complaint claims these offerings were misrepresented as comprehensive health insurance or equivalent products. Additionally, the defendants allegedly claimed that their plans provided substantial coverage for specific medical needs or limited consumers’ financial responsibility for certain medical services through copays or deductibles.
The complaint further asserts that the defendants violated the FTC’s Telemarketing Sales Rule and the FTC Act. In light of these violations, the FTC is seeking refunds for affected consumers and other forms of relief. Following the court’s ruling, a temporary restraining order has been issued against the defendants, halting their operations while the case proceeds.
As the situation develops, the FTC aims to ensure that consumers are protected from misleading health insurance marketing practices and can make informed decisions regarding their health care coverage.
