Medicare to tighten sales practices on Advantage plans
Business First of Louisville
The Centers for Medicare & Medicaid Services on Thursday proposed more protection for consumers who enroll in Medicare Advantage health plans and Medicare prescription drug plans.
The intent is to strengthen marketing standards and better protect beneficiaries, including those receiving the low-income subsidy and beneficiaries enrolled in special needs plans.
Under the proposal, companies that sell Medicare Advantage plans must alter sales commissions to stop salesmen from switching consumers to a new plan each year to earn the highest possible fee.
The Centers for Medicare and Medicaid Services also plan to ban cold-calling and door-to-door solicitation by companies to sell Medicare Advantage plans, and prohibit Medicare Advantage sales pitches at educational events such as health information fairs and community meetings, or in medical office waiting rooms.
Plans are sold by such health-care companies as Louisville-based Humana (NYSE: HUM) and Minneapolis-based UnitedHealth Group Inc.
Insurance companies, consumer groups and others have until July 15 to offer suggestions or comments on the proposals. The agency will review public comments before finalizing changes in the regulations.
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