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Medicare News

Kohl Wants Action from Medicare Advantage Plans on Marketing Reform

'We’ve heard pledges and promises from this group before,' he says to recent statement by insurance trade group

March 10, 2008 - Sen. Herb Kohl (D-WI) reacted firmly to the recent proposal from America’s Health Insurance Plans on reforming the marketing of Medicare Advantage plans. “We can no longer wait for these companies to clean up their act while seniors continue to be duped and misled,” said the chairman of the Senate Special Committee on Aging.

Karen Ignani, President and CEO of AHIP, presented the plan at a meeting with the Senate Finance Committee, which is chaired by Max Baucus (D-MT). 

“We’ve heard pledges and promises from this group before,” said Chairman Kohl, “but where’s the follow-through? 

“It’s time we give states more room to step up regulation and enforcement of the insurance industry in this arena,” he added. 

At the Aging Committee’s May 2007 hearing, officials representing the state insurance commissions from Wisconsin, Oklahoma, and Georgia described a nationwide pattern of aggressive, and at times deceptive, marketing practices employed by Medicare Advantage sales agents. 

Ignani also testified at the May Aging Committee hearing, announcing at the time a new AHIP initiative to strengthen training for its members’ agents and brokers. 

In July, Chairman Kohl was joined by Senators Byron Dorgan (D-ND) and Ron Wyden (D-OR) in introducing the Accountability and Transparency in Medicare Marketing Act of 2007 (S. 1883). 

The bill would give state insurance commissioners the ability to develop standardized marketing and sales regulations of Medicare Advantage (MA) and Medicare prescription drug plans, and regulate both agents and companies in the marketing and sales of MA and prescription drug plans. 

More information about the May 16, 2007, hearing is available here:  http://aging.senate.gov/hearing_detail.cfm?id=274320&

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