CONSUMER NEWS RECALLS COMPLAINT FORM SCAM ALERTS

Small Claims Guide \| Class Actions \| Lemon Law \| FAQ \| Resources \| Newsletters \| Spanish
Automotive Education Electronics Family Finance Health Homeowners Shopping Travel

State Regulators Object to Medicare Hard Sell

November 8, 2004
State insurance commissioners are accusing Medicare of requiring Medigap insurers to use misleading language in promoting the new coverage options that become available under Medicare in 2006.

The National Association of Insurance Commissioners (NAIC) wrote that the federal government was using "precisely the type of 'push' advertising technique that the NAIC and its members consistently oppose and prohibit at the state regulatory level," the New York Times reported.

Under the new Medicare law, Medigap insurers are required to send a notice to policyholders to explain coverage options that will be available in 2006, when the new prescription drug benefit will take effect. The federal Centers for Medicare and Medicaid Services (CMS) has instructed insurers to tell beneficiaries in the first paragraph of the notice that the new drug benefit "will provide greater value than your current coverage."

NAIC said that while an explanation of drug coverage options would be helpful for beneficiaries, CMS has "gone beyond the scope and purpose of the law" by requiring such language.

The letter said that the value of the drug benefit programs is contingent on many factors, such as medical condition, drug costs and financial situation. The commissioners indicated that they were "speaking not as Republicans or Democrats but as professional insurance regulators responsible for protecting consumers."

"As regulators, we should focus on getting facts and information to people, not on cheerleading for a particular plan or a particular type of coverage," Kansas Insurance Commissioner Sandy Praeger (R) said, according to the Times.

Bush administration officials denied that the statements about the value of the new drug benefit are misleading, saying that the program would save beneficiaries an average of $1,000 annually.

Report Your Experience
If you've had a bad experience -- or a good one -- with a consumer product or service, we'd like to hear about it. All complaints are reviewed by class action attorneys and are considered for publication on our site. Knowledge is power! Help spread the word. File your consumer report now.

July 7 2008

Print, mail, etc.

FREE CONSUMER NEWSLETTERS

The Daily Consumer
Afternoons M-F
Sign up now!

Consumer News & Alerts
Every Sunday
Sign up now!

Knowledge is free.
Knowledge is power.

Back to the top |

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice. ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof.