Launches Inquiry into Medicare Advantage Marketing Practices

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On August 23, 2022, Senate Finance Committee Chair Ron Wyden (D-Ore.) announced he was launching an inquiry into potentially deceptive marketing tactics by organizations offering Medicare Advantage benefits and Part D prescription drug programs. Senator Wyden’s inquiry comes following information from CMS in its final rule earlier this year that marketing complaints more than doubled from 2020 to 2021 and that many of those complaints were related to third-party marketing organizations (TPMOs). Senator Wyden sent letters to 15 state insurance commissioners and state health insurance assistance programs requesting data about Medicare Advantage marketing complaints and other information.

Senator Wyden’s requests include the number of Medicare Advantage and Part D marketing complaints from 2019 to 2022 and how many of those complaints were related to TPMOs. Senator Wyden also requested examples of potentially false or misleading marketing materials and advertisements. More specifically, he requested information regarding trends in unsolicited contact of beneficiaries via telemarketers, texting, online outreach, and online targeted advertising.

A copy of Senator Wyden’s letter to the Oregon Department of Insurance Commissioner is available here. A copy of CMS’s final rule discussing the increase in Medicare Advantage and prescription drug plan (PDP) marketing complaints and imposing new requirements on TPMOs is available here.

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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