U.S. health insurers say they face gov’t gag
Health insurers accused the U.S. Medicare agency on Tuesday of political interference in a battle over whether the industry can lobby its customers directly over healthcare legislation.
The Centers for Medicare & Medicaid Services (CMS), which oversees the Medicare program for the elderly and disabled as well as privately run Medicare alternatives, said on Monday it was investigating a letter Humana Inc sent enrollees about efforts to overhaul the nation’s healthcare system.
Humana’s letter, sent in an envelope citing important plan information, told customers the Democrats’ bills could hurt “millions of seniors and disabled individuals could lose many of the important benefits and services that make Medicare Advantage health plans so valuable,” according to CMS.
The agency also warned other insurers against sending potentially misleading health reform mailings to customers.
America’s Health Insurance Plans, the industry lobby group, called the CMS action a “gag order.”
The group argued that any cuts, including those in various Democratic proposals, would raise costs and reduce benefits for those who want private plans.
“Seniors have a right to know how the current reform proposals will affect the coverage they currently like and rely on,” said AHIP spokesman Robert Zirkelbach.
Republicans seized on the spat. “It looks likes CMS is engaged in government intimidation, pure and simple,” said Representative Dave Camp, the ranking Republican on the U.S. House of Representatives Ways and Means Committee.
Senate Republican Leader Mitch McConnell of Kentucky, where Humana is based, also blasted the CMS “effort to squelch free speech.”
A spokesman for Senate Majority Leader Harry Reid said it was “indefensible for insurance companies to send out propaganda” to scare the elderly.
“It’s clear that we are closer than ever to meaningful reform because defenders of the status quo are ginning up scare tactics to stand in the way of fixing our broken system,” Jim Manley said.
CMS dismissed the criticism, saying it wanted to ensure companies do not violate marketing rules or improperly use protected Medicare mailing lists.
“Our goal is to safeguard beneficiaries’ personal information,” agency spokesman Peter Ashkenaz told Reuters.
BILL AUTHOR WELCOMES CMS ACTION
Democratic Senator Max Baucus had urged CMS to get involved and later welcomed the investigation of what he called “scare tactics” by Humana.