New rule would limit insurers contact with elderly, disabled

Several provisions in the new regulations are already part of voluntary guidelines for the industry. But there are some areas where Medicare went beyond what the insurance industry sought. For example, insurers routinely sent brochures in the mail explaining a product to a potential customer. Then agents would call to make sure they got the brochure. They would no longer be allowed to make those calls under the proposed rule.

Also, insurance agents commonly used their meetings about the drug benefit to pitch other types of products such as long-term care insurance or disability insurance. The regulation would prevent them from doing so -unless the agent cleared it with the potential customer before the meeting.

Karen Ignagni, president of America's Health Insurance Plans, said the rule would prevent agents from marketing at health fairs or anywhere else where health care is delivered. She said the rule is an important step in protecting beneficiaries and questioned the need for more state regulation.

"Medicare is a federal program. Moving away from federal regulation toward 50 states approaching this in 50 different ways doesn't set a uniform standard for beneficiaries," Ignagni said. "That's why our board urged additional federal requirements."

___

On the Net: