Regulators target Medicare Advantage sales practices

Although Medicare and Medicaid announced new regulations to curb alleged abusive sales practices, there remains widespread concern that states need greater authority to protect consumers. This has led to pending legislation in the U.S. Senate – the Accountability and Transparency in Medicare Marketing Act of 2007.

In this environment, agents must never engage in the following sales practices:

• Pressuring beneficiaries to enroll in unsuitable or inappropriate plans.
• Enrolling beneficiaries without them fully understanding it will lead to loss of traditional Medicare and Medigap coverage.
• Misleading seniors about Medicare Advantage’s provider network or provider reimbursement policies.
• Mishandling enrollment applications.
• Not informing (or misleading) seniors about a plan’s cost-sharing features.
• Using Medicare Part D (coverage for prescription drugs) to pressure a senior to buy Medicare Advantage or life insurance coverage.?