NAIC Urges Stronger Medicare Regulation

National Association of Insurance Commissioners (NAIC) President and Kansas Insurance Commissioner Sandy Praeger today issued the following statement in response to the proposed regulation on Medicare marketing released by the U.S. Centers for Medicare & Medicaid Services (CMS):

“We are pleased with a number of specific items that CMS has included in their proposed regulation to strengthen the marketing and sales of Medicare private plans. In fact, some of the items are things that the NAIC has previously urged CMS to consider. For example, the prohibition on cross-selling, which we have urged for several years, and the proposal to require plans to adhere to state agent appointment laws.

“However, even with all of the positive changes proposed in this new rule, there is still a significant issue left unaddressed. That is, there is no change to address the fundamental problem that states do not have sufficient regulatory authority to ensure proper enforcement in the marketing and sales of Medicare private plans, or to provide timely responses to address and resolve consumer complaints.

“Although CMS has made a number of attempts over the past year to tighten their rules, we have continued to see problems in the marketplace because the federal government is unable to provide adequate enforcement. The proposed rule fails to ensure that the states have the ability to properly oversee the marketing activities of these plans.”