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CMS Suspends Medicare Advantage Mailings

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According to National Underwriter the Centers for Medicare and Medicaid Services (CMS) ordered all Medicare Advantage providers to suspend what it considers to be misleading mailings sent to beneficiaries about health care and health reform.

The order was sparked by a mailing campaign conducted by Humana Inc. The mailings conveyed to recipients that current health care reform legislation in Congress would eliminate the entire Medicare Advantage program.

CMS representatives state that the mailings may be in violation of Medicare rules, as Humana’s campaign assets were not submitted to CMS for approval – a requirement for any marketing piece that contains Medicare Advantage benefit information. Humana has agreed to suspend the mailings while a final decision is made.

Representatives from America’s Health Insurance Plans (AHIP) are criticizing the move as unfair and calling it a “gag order.”

Weekly Recap:

World Alzheimer’s Day: On Sept. 21, Alzheimer’s Disease International released a report stating that 5.3 million Americas have the disease. The report also forecasts that 35 million people worldwide will have dementia next year which is primarily caused by Alzheimer’s disease. The most startling fact in the report is its forecast that dementia prevalence will almost double every 20 years to 65.7 million in 2030 and 115.4 million in 2050.

Bill to Stop Part B Increase: A new house bill was introduced that aims to keep Medicare Part B premiums the same. With no Social Security benefit increase next year, an increase in Part B will effectively further reduce the income of senior citizens. The bill is sponsored by Rep. Dina Titus (NV-D), AARP, and several other senior-advocate organizations.

AA Retirees Lose Coverage: American Airlines will discontinue paying for Medicare supplement insurance for its retired, non-union employees because the cost is too high. As of January 1, non-union retirees age 65 and older will have to pay for supplement insurance themselves. Those who participated in the pre-fund program will be reimbursed. Sources: National Underwriter, Senior Journal, Dallas Morning News

Comments

THANK YOU CMS! It's about time. I mean how can the government allow these companies to call their plans "any, any, any plans" or "all-in-one plans" or even "Medicare Advantage"? The marketing has been downright deceptive from the beginning. I hear the bells tolling now for MAPD.
Posted @ Friday, September 25, 2009 2:20 PM by Medicare supplement plan
I agree with the writer above that some Advantage Plans have a lot of hype to them and yet their advertising has all been approved by CMS. I sell both supplement and Advantage plans. I would prefer that all plans be a Supplement plan, but a lot of people can not afford the monthly premiums. Advantage plans provide care with low co-payments and a maximum true out of pocket cost so that they will not be completly financially devistated if a major illness or accident happens. 
 
 
 
I have been in homes that if the client did not have a Supplement or Advatage plan and a major sickness or illness happened, they would be in debt for the rest of their lives. 
 
 
 
Right now if the congress would just do something about Tort Reform, then a lot of dollars would be saved and make it easier for the Dr. to perform his duties without John Edwards busting through the front door with a law suit for applying a bandage to high or to low on a whound. 
 
 
 
Just my opinion and thoughts, I'm sure a lot of you do not agree.  
 
 
 
'O Well"
Posted @ Friday, September 25, 2009 2:47 PM by Jim Wood
I think its a bunch of bull!!!! I've seen the letter that Humana sent out and there was NOTHING wrong with it........not every state offers supplements to people under the age of 65 and those 65 or older dont always qualify for a supplement nor can all afford the premiums. I think it's total junk that unless you agree with the way whomever is in office you are censored........its not right and i'm sorry but yes the first thing they want to cut out is an advantage plan - i've seen MANY people helped by these plans and think its a crying shame if they go.
Posted @ Friday, September 25, 2009 7:22 PM by karen parker
I am an agent (independent) for Humana also and though I don't always agree with their policies and such, I think it is a challenge to our constitution , first amentment especially, and I strongly disapprove, just as I do with CMS's ability to set the amount of commission that an agent might realize from a sale. Jesse Paine
Posted @ Saturday, September 26, 2009 8:52 AM by Jesse Paine
The article clearly states the Humana DID NOT have CMS approval. Why are they permitted to merely suspend this mailing rather than being seriously penalized. I suppose this comes under the heading of asking forgiveness rather than permission.
Posted @ Saturday, September 26, 2009 10:03 AM by Joe Clark
Clients should have the knowledge of Medicare Supplements and the choice of Medicare Advantage. When a company sells BOTH it CAN be confusing to the client, this is WHAT AGENTS are for. CMS says we are NOT allowed to compare....????????
Posted @ Monday, October 05, 2009 10:21 AM by Insurance Choices
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