At PSM, we have been receiving some questions regarding the topic of gifts/promotional items and want to share some further guidance on these regulations. The Social Security Act prohibits offering anything of value to a Medicare beneficiary in exchange for a referral or to influence their decision to enroll into a Plan.
It’s important to note that agents are not permitted to provide anything of value (e.g., gift card, flowers) to a consumer/member in exchange for a referral (i.e. contact information including name and telephone number/email). The key difference is the purpose of the gift. If it’s given in exchange for a referral, it’s not allowed.