More Oversight on Medicare Supplemental Insurance

If you are a senior on Medicare, no doubt you have heard a lot about Supplemental Insurance and either bought or considered buying a supplemental plan. 

The good news is that there are many plans available.  The bad news is that with so many plans available, there is a lot of confusion about what each plan covers and which plans are best for you.

Once you start researching the supplemental plans, if you call the individual companies or organizations who sell these plans, you will often find double-talk and a great deal of pressure to coerce you into buying particular policies.  This practice has become so common that state officials in a number of states are looking to congress to grant them more power to regulate the marketing of these plans. 

Many states feel that not only have seniors received pressure, they have also been pushed into unsuitable plans that will not cover them in ways that these individuals will need.  This proposal would be unusual, however the states feel that it will protect seniors and eliminate confusion about coverage.

Current federal regulations do not protect consumers from marketing and sales abuses.  In addition, consumers are usually left on their own with no support or assistance in dealing with these issues.

One situation that has been a critical issue needing to be addressed is that individuals have been bounced back and forth between the Center for Medicare Services (CMS) and the state insurance commissioner’s office in various states.  Instead of getting assistance individuals have often lost in a maze of non-answers held together by red tape.

In addition, the states feel that agents who sell these supplemental policies should not be allowed to sell life insurance, long term care and other products that earn them commissions.  The states feel that the agents selling supplemental plans should have to disclose their commission amounts, as well.

It is a positive thing that the states are looking to reign in the sale of supplemental policies.  It is important to keep your eyes on this issue and for you to take your time to research supplemental policies, feel comfortable with the information and the policy, and don’t allow yourself to be pushed or coerced into buying any coverage that you need.