Insurers deny allegations, say plans are already under rigorous oversight.
Senate Finance Committee Chair Ron Wyden, D-OR, is asking insurance regulators in 15 states to send him consumer complaints about Medicare plans using “potentially deceptive” marketing to sell coverage.
"I have heard alarming reports that MA and Part D health plans and their contractors are engaging in aggressive sales practices that take advantage of vulnerable seniors and people with disabilities," Wyden says in his letter to the regulators.
"I write seeking information about potentially deceptive marketing practices being conducted by insurance organizations offering Medicare benefits under the Medicare Advantage (MA) program and the Part D prescription drug program," he says.
Wyden notes that the Centers for Medicare & Medicaid Services got more than twice the numbers of complaints about Medicare Advantage plans in 2021 than it did in 2020.
The letters were sent to regulators in Arizona, California, Colorado, Florida, Georgia, Illinois, Massachusetts, Michigan, Missouri, New York, North Carolina, Ohio, Oregon, Pennsylvania, and Texas.
Health Plans Respond
The Better Medicare Alliance, a trade group financed by the nation's largest health insurance companies, took issue with Wyden's letter.
BMA President and CEO Mary Beth Donahue, said in a media release that "Medicare Advantage plans' marketing materials are already subject to careful regulation: they must be approved by CMS and are answerable to more than 50 pages of federal guidelines."
"With a 94% consumer satisfaction rate, it is clear that this program consistently lives up to its promise for seniors," Donahue says, citing a BMA-commissioned survey released in January.
Instead of overregulating health plans, Donahue says "policymakers must take action to modernize Medicare enrollment in ways that offer more transparency in coverage choices and empower consumers, rather than criticizing those standing in the gap to help beneficiaries navigate this difficult and complicated process."
“I have heard alarming reports that MA and Part D health plans and their contractors are engaging in aggressive sales practices that take advantage of vulnerable seniors and people with disabilities.”
Sen. Ron Wyden, D-OR.
John Commins is a content specialist and online news editor for HealthLeaders, a Simplify Compliance brand.
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KEY TAKEAWAYS
CMS got more than twice the numbers of complaints about Medicare Advantage plans in 2021 than it did in 2020.
The Better Medicare Alliance, a trade group financed by the nation's largest health insurance companies, has taken issue with Wyden's letter.