Thankfully, Senator Ron Wyden (D-OR) recently launched an inquiry into the "deceptive marketing tactics" that some insurance salesmen use to trick seniors into purchasing what is often the wrong plan for their unique circumstances. The senator deserves praise for spearheading the investigation. Now, it's up to the rest of his colleagues to ensure seniors don't get ripped off.
Unlike traditional Medicare, which the federal government administers, Medicare Advantage plans are sponsored by private insurers. These plans can vary widely, with different monthly premiums, deductibles, and covered benefits. The average beneficiary has more than 30 Advantage plans to choose from, each with its own pros and cons.
This "customizable" aspect of Medicare Advantage plans makes them attractive to many seniors. They also cover certain services -- like vision, dental, and hearing benefits -- that traditional Medicare does not.
The program is growing rapidly. In 2010, about one-quarter of Medicare-eligible Americans enrolled in Medicare Advantage plans. Now, roughly half do. Two million Americans joined Medicare Advantage between 2021 and 2022, bringing the total to 28 million beneficiaries.
But because Medicare Advantage offers so many options, it's imperative that seniors choose the right one for their needs. And that goes beyond looking at the monthly premiums. A low-premium-plan might require seniors to pay more out-of-pocket, or cover fewer drugs. Cheaper coverage could mean a smaller network of doctors.
That's where ethical marketing practices, or the lack thereof, come in. In announcing the new inquiry, Senator Wyden called attention to "alarming reports that MA and Part D health plans and their contractors are engaging in aggressive sales practices that take advantage of vulnerable seniors and people with disabilities."
These problems aren't new. Last year, CMS received nearly 40,000 complaints about the marketing of Medicare Advantage and Medicare Part D plans. That was twice as many as in 2020 and a seven-fold increase from just five years before. This trend has persisted despite ongoing efforts to punish those behind the aggressive marketing.
It should be noted that ad campaigns sometimes come from third-party advertising agencies, or simply scammers after seniors' personal information, rather than the insurance companies themselves.
The federal government could also be doing more. Modernizing the Medicare enrollment process would be a good start, as would putting more resources into educating Medicare-eligible Americans about their options.
Congress has a clear role in protecting seniors. Senator Wyden is especially aware of this as the Senate sponsor of the Elder Justice Reauthorization and Modernization Act of 2021. He is absolutely right to initiate this inquiry and I hope he receives a thorough response from state insurance officials across the country.
Robert B. Blancato is the executive director of the National Association of Nutrition and Aging Services Programs.