Innovative Partners, American Collective, Papyrus Green Investments, Health Plan Administrators

The FTC obtained a temporary restraining order against the defendants based on alleged violations of the FTC Act, Telemarketing Sales Rule, Impersonation Rule, and Gramm-Leach-Bliley Act. The complaint seeks refunds for affected consumers who paid millions in "premiums" for products they did not want or need, exposing them to potentially significant and unexpected medical costs. This action is part of FTC Chairman Andrew N. Ferguson's Healthcare Task Force initiative launched in March 2026 to target unlawful conduct that drives up healthcare costs.

The Federal Trade Commission has obtained a temporary restraining order against a nationwide operation that allegedly impersonates the government and large insurance carriers to deceive consumers seeking health insurance. The scheme, operating under names including Innovative Partners and American Collective, sells supposedly comprehensive PPO plans that do not provide the promised coverage and also targets already-insured consumers by claiming they need to pay to maintain or renew coverage.

The defendants operated a fraudulent telemarketing scheme that falsely tells consumers they are buying "state issued" PPO insurance policies with no deductible and full coverage. When dealing with consumers who already have health insurance, telemarketers deceptively claim to be calling from real insurance carriers or the government, stating that without immediate payment their policies will be canceled. The products sold are not PPO plans or comprehensive health insurance policies and cannot be sold on any state or federal government health insurance marketplace. Instead, they include medical discounts, ancillary products, and capped payouts for certain medical events while some plans exclude hospital care entirely.