06 May 2008

States Look to Rein In Private Medicare Plans

WASHINGTON — State officials say they will soon ask Congress for more power to regulate the marketing of private Medicare insurance plans to older Americans because they are still receiving complaints of high-pressure sales tactics that have led some beneficiaries to sign up for unsuitable policies.

The proposal would be a profound change, but state officials say it is needed to protect consumers and reduce confusion.

Of the 44 million Medicare beneficiaries, 25 million are now enrolled in some type of private plan — either a Medicare Advantage plan, which provides a wide range of health services, or a free-standing prescription drug plan, which covers just medicines.

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