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Ahead of the Bell: Health Insurers

by AP Associated Press - Jun 26,2007

WASHINGTON (AP) -- Executives from two of the largest health insurers are expected to tell lawmakers Tuesday they are cracking down on aggressive and misleading tactics reportedly used by some of their sales representatives.

Members of the House Energy and Commerce Committee announced the hearing to investigate reports of health insurance salesmen forging signatures and switching seniors' benefits without telling them in order to increase enrollment in their Medicare plans.

Earlier this month seven insurers -- including UnitedHealth, Humana Inc., WellCare Health Plans Inc. and Coventry Health Care Inc. -- agreed to stop promoting their so-called private fee-for-service plans until Medicare officials have certified they are promoting them fairly.

Representatives from the agency that runs Medicare and health insurers WellCare and Coventry Health Care are scheduled to speak. State insurance officials will also testify and are expected to ask Congress to give them authority to regulate sales representatives operating in their states. Current law does not allow states to police companies selling Medicare plans.

Of the 43 million seniors enrolled in Medicare, about 1.3 million are signed up for privately-run fee-for-service plans.

The plans have grown increasingly popular with seniors thanks to extra benefits, such as dental care and eye exams. But critics warn the plans often carry unexpected cost and limited access to physicians, who can decide on a case-by-case basis whether to see seniors enrolled in the plans.

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Copyright © 2007 The Associated Press. All rights reserved.

 

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