Medicare Pitches Banned From Giving Free Lunches

Companies that offer Medicare health insurance and prescription drug coverage can no longer offer free meals during pitches or make unsolicited sales calls, the U.S. government said on Monday.

The insurers also must modify commissions to stop salespeople from switching patients to a new plan each year to earn the highest possible fee, the Centers for Medicare & Medicaid Services (CMS) said.

The changes are meant to “protect Medicare beneficiaries from deceptive or high-pressure marketing tactics by insurance companies and their agents,” Acting CMS Administrator Kerry Weems told reporters during a conference call.

The new rules also prohibit unsolicited door-to-door marketing and pitches in doctors office waiting rooms or other places where health-care is delivered.

Companies that violate the new rules could face penalties of up to $25,000 for each person that was harmed or might have been harmed by the practices, Medicare officials said.

Source:reuters.com