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Feds: Seven healthcare sponsors can resume marketing

Managed Care Weekly Advisor, September 26, 2007

Seven healthcare sponsors can restart marketing private-fee-for-service plans to seniors after being found in compliance with program requirements by the federal government. The providers had voluntarily suspended marketing of the plans in June in light of concerns over deceptive practices by the Centers for Medicare and Medicaid Services.

According toCNN, Humana, United Health Group, Blue Cross Blue Shield of Tennessee, Aon Corporation, Coventry Health Care, Universal American Financial, and WellCare Plans have resumed marketing to seniors. Medicare now has regulations to monitor all plan marketing as well as agent and broker activity. CMS has also begun more than a dozen new procedures to monitor the companies, including a secret shopper program.

Any violation of the new rules will result in a number of penalties, including termination from the Medicare program and civil monetary penalties.

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