Marketing Medicare; Smith Takes a Critical Look at Aggressive Sales of Medicare Advantage Plans
Press Release
Ranking Member Gordon H. Smith (R-OR) examined reports of aggressive and sometimes fraudulent sales tactics employed by agents selling Medicare Advantage (MA) plans at a hearing in the Senate Special Committee on Aging today titled, "Medicare Advantage Marketing & Sales: Who Has the Advantage?" Senator Smith announced that he will issue a report of his findings from a two-year oversight investigation of Medicare, which will include a review of sales and marketing of MA and other Medicare
Part D products, later this year.
"I am troubled by reports in my home state of Oregon regarding aggressive marketing tactics such as soliciting seniors at retail stores, pharmacies, doctors offices and in cancer clinics; door-to-door cold calling; and in extreme cases, forging beneficiaries' signatures on enrollment forms," said Senator Smith. "Regrettably, these complaints appear to reflect what is transpiring across the country. It is critical that stakeholders step up and quickly address problems, which, if left unchecked, will cripple beneficiaries' confidence in the program.
"I want to ensure that beneficiaries who enroll in these plans are able to make informed choices and select products that best meet their needs. This cannot happen in an environment that is currently permeated by fraud and abuse."
For years, traditional Medicare was the only option available to seniors. Recent Medicare reform laws have provided expanded choices in healthcare coverage, and increasing numbers of beneficiaries now are opting for Medicare Advantage plans, such as HMOs, PPOs and Private-Fee-for-Service (PFFS). Due to the explosion of these products on the market, insurers are aggressively competing to enroll beneficiaries in their plans by using independent agents and brokers in an unprecedented fashion.
The hearing examined the marketing of Medicare Advantage plans, as well as the oversight roles of the plans, states and the Centers for Medicare and Medicaid Services (CMS).
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