FTC Charges Two Healthcare Companies with Misleading Consumers, $145M Settlement Reached

Two US companies, Assurance IQ and MediaAlpha, have agreed to pay $145m to settle FTC charges of misleading consumers over healthcare plans. Assurance IQ allegedly deceived consumers about the costs and benefits of short-term medical and limited benefit indemnity plans, while MediaAlpha was accused of using misleading domains and actors to promote non-existent government health insurance programs.

Two U.S. companies, Assurance IQ and MediaAlpha, have agreed to pay a combined total of $145 million to settle Federal Trade Commission (FTC) charges related to misleading consumers about healthcare plans. The settlements are part of the FTC's broader effort to address unlawful lead generation practices in the healthcare industry, particularly in relation to health insurance [1].

Assurance IQ, a technology platform acquired by Prudential Financial in 2019 but later shuttered, allegedly deceived consumers about the costs and benefits of short-term medical (STM) and limited benefit indemnity (LBI) plans. The company's telemarketers made deceptive statements about the plans' actual costs, benefits, and coverage for preexisting conditions. Assurance IQ has agreed to pay $100 million as part of the settlement [2].

MediaAlpha, a technology company, faced allegations of misleading consumers about personalized health insurance options. The company was accused of using inaccurate information and engaging in nuisance robocalling. MediaAlpha has agreed to pay $45 million and implement additional disclosures and monitoring processes as part of the settlement [3].

The settlements highlight the FTC's commitment to protecting consumers from deceptive practices in the healthcare industry. Christopher Mufarrige, director of the Bureau of Consumer Protection, emphasized the importance of accurate information in health insurance, one of the most critical products consumers purchase to protect themselves and their families [1].

The settlements are expected to have minimal financial impact on MediaAlpha, which reported a 41% year-over-year (YoY) increase in revenue in Q2 2025, driven by exceptional growth in its Property & Casualty (P&C) insurance vertical. However, the company recorded a net loss of $(22.5) million, primarily due to a $33 million reserve related to the FTC settlement [3].

Assurance IQ's parent company, Prudential, noted that the allegations pertain to the historical operations of an acquired business that is no longer operational. The settlement allows Prudential to focus on its core businesses and capabilities [2].

References:
[1] https://www.foxbusiness.com/politics/ftc-secures-145m-settlement-from-companies-allegedly-deceived-health-insurance-shoppers-robocalls
[2] https://www.ainvest.com/news/mediaalpha-settles-ftc-investigation-45-million-2508/
[3] https://www.ftc.gov/news-events/news/press-releases/2025/08/assurance-iq-mediaalpha-pay-total-145-million-settle-ftc-charges-they-misled-consumers-seeking