The insurance industry is in a bit of a pickle, but it’s getting out of it
By Sarah BinderAssociated Press – FEBRUARY 03, 202010:12:42The Insurance Industry Institute (IIA) said on Tuesday it had removed all of its rating of the U.S. health insurance industry from the Better Business Bureau’s website after the Federal Trade Commission (FTC) took it to task for misleading the public and for offering “free, low-quality” insurance coverage to people without insurance coverage.
The IIA said in a statement that it “has removed all ratings” from its website, but that it has been reviewing the matter to determine how it can regain the “trust” it lost.
The watchdog agency said it “will not allow rating agencies to be used to sell consumers false and misleading information.”
The agency also warned that the IIA is working with the Department of Health and Human Services (HHS) to ensure that it follows the guidelines for ratings in its Consumer Protection and False Claims Act, and that it conducts its own reviews of the rating agencies.
It added that the agency will continue to monitor the IAA’s efforts.
The agency said the agency “has not received any indication that any other rating agency has sought to manipulate the ratings, but we will take appropriate action.”
The Better Business Bureaus website, which has more than 8.5 million users, said in an email that the ratings were removed “for reasons of policy and/or enforcement.”
The FTC, which also takes action against deceptive and unfair advertising, has accused the IGA of misrepresenting the health insurance market, saying the rating agency “failed to disclose and misrepresented the quality of the industry’s ratings.”
The IAA did not immediately respond to a request for comment.