Wednesday, June 20, 2007
Questionable Medicare Policies Under Fire
Due to highly questionable sales tactics and reports of outright fraud, seven major health insurers have agreed to suspend marketing for a certain form of Medicare policy.
Well known companies including Humana, the WellCare Group, and UnitedHealth Group have agreed that to discontinue marketing for the plan known as the private-fee-for-service plan until they can prove to officials that sales materials are accurate.
The actions taken against these plans that are sold by private insurers as an alternative to traditional Medicare are a result of an overwhelming number of complaints by consumers as well as a Senate committee hearing last month that looked into abuses.
According to the SF Gate, "Some agents violated Medicare rules by showing up uninvited at senior citizens centers, misleading beneficiaries about the products and, in a few cases, forging signatures to increase sales, according to government officials and consumers. In some cases, the agents erroneously assured new enrollees that their doctors would accept the policies."
Abby Block, director of beneficiary choices for the Centers for Medicare and Medicaid Services said, "This voluntary agreement demonstrates the plans are stepping up to assure deceptive marketing practices end and beneficiaries fully understand what they are purchasing,"
Currently around 1.3 million seniors and disabled are subscribed to the Medicare fee-for-service policy. Medicare fee-for-service is the fasted growing form of Medicare managed plans. The new policy implemented by the seven well known Healthcare groups, which comprises more than 90% of all managed healthcare groups, has agreed to test employees on their product knowledge and register them with the government. Although during this time they have agreed to suspend their marketing, they are still allowed to sell the fee-for-service policies.
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