Gag Order Partly Lifted

The basic points in this article on lobbying seniors about changes to Medicare are:

1) the Obama administration had "clarified" a previous Medicare order denying health plans the right of communicating with seniors about changes to health plans under the health care reform proposals;

2) the clarification issued on Friday allows plans to lobby seniors if the have beneficiary permission and do not use federal funds data.

In an attempt to defuse the controversy surrounding Medicare's order to private insurers restricting them from providing information to beneficiaries on the impact of the impact of health reform legislation on their plans, Medicare issues further guidance to insurers.  Essentially backing off the previous "gag" order.

 

The Obama proposals call for trimming the extra funds paid to private insurers, crafted by Republicans during previous Medicare reforms.  These extra funds allow private insurers to provide more comprehensive benefits than Medicare.

 

According to these insurers, the result will be higher costs and reduced benefits for seniors, as well as lower profits.  Several Democrats complained that the insurers were attempting to incite fear and were unfair, and Medicare issued an order which basically shut down the insurers attempts to explain possible negative effects of the reforms to beneficiaries.

 

Many viewed the Medicare order as an infringement on the free speech rights of the plans.  Many observers felt that the original guidance was a heavy handed political attempt to restrict participation in the reform debate.

 

About one fourth of all Medicare beneficiaries are signed up in private plans.

 

Also on Friday Medicare issued a "letter of noncompliance" (a reprimand) to Humana, whose original communications with seniors in its plan started the furor.

 

One could call both the original order, subsequent guidance and the Humana letter, suspect given the potential response from Medicare beneficiaries to cuts in benefits and increased costs as advocated by Obama.

 

 

This author consults with leading institutions through GLG