The Bush Administration is proposing regulations to blunt inappropriately aggressive marketing of private Medicare insurance plans. The new rules would outlaw unsolicited visits and phone calls to beneficiaries and regulate commissions paid to sales agents. About 55 percent of Medicare recipients also subscribe to supplemental private plans such as Medicare Advantage or prescription drug plans.

Consumer advocates and state governments have complained loudly about inappropriate, high-pressure sales tactics by private insurers. The New York Times reported recently on a draft report from the National Association of Insurance Commissioners indicating that states have received numerous consumer complaints. State officials are seeking regulation and standard-setting on how the private plans are marketed.

The Bush proposal bans door-to-door marketing of private Medicare plans. Also, The Times reports:

Agents could not accost beneficiaries in the parking lot of a center for the elderly, a clinic or an apartment building. Agents could respond to telephone inquiries, but they could not make “cold calls” to beneficiaries.

I’ll have more on this in an upcoming column.

Tags | Medicare, public policy