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Regulators Call on Congress to Rein in Marketing and Sales Abuses

WASHINGTON, D.C. (Sept. 25, 2009) — The National Association of Insurance Commissioners (NAIC) warns insurance companies to end practices that alarm senior citizens about federal health reform efforts, and is calling on Congress for changes to end marketing and sales abuses.

In a letter to Chairman Max Baucus (D-Mt.) and Ranking Member Charles Grassley (R-IA) of the U.S. Senate Finance Committee, the NAIC cites indication from the Centers for Medicare and Medicaid Services (CMS) of possible “misleading communications” to policyholders.

“State insurance regulators take scare tactics directed at senior citizens very seriously,” said NAIC President and New Hampshire Insurance Commissioner Roger Sevigny. “To the extent that state insurance agents and brokers may be participating in these communications or insurance companies are contacting non-Medicare Advantage policyholders, state regulators will remain vigilant and take appropriate action.”

“State regulators believe that these troublesome practices are directly tied to excess payments made to Medicare Advantage plans, and support changes made to federal law that would reign in these abuses,” said chair of the NAIC Health Insurance and Managed Care Committee and Kansas Insurance Commissioner Sandy Praeger. “In addition to changes to payments made to Medicare Advantage plans, we urge you to restore state insurance regulatory authority over Medicare private plans.”

Click HERE to view the full text of the letter.

About the NAIC

Formed in 1871, the National Association of Insurance Commissioners (NAIC) is a voluntary organization of the chief insurance regulatory officials of the 50 states, the District of Columbia and five U.S. territories. The NAIC has three offices: Executive Office, Washington, D.C.; Central Office, Kansas City, Mo.; and Securities Valuation Office, New York City. The NAIC serves the needs of consumers and the industry, with an overriding objective of supporting state insurance regulators as they protect consumers and maintain the financial stability of the insurance marketplace. For more information, visit

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Communications Division
(816) 783-8909

Scott Holeman

Jeremy Wilkinson
Electronic Communications

Miun Gleeson

Vanessa Sink

Steve Cohen
Communications Specialist

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