To: KLP who wrote (325561 ) 9/22/2009 3:05:29 PM From: KLP 2 Recommendations Read Replies (2) | Respond to of 793843 Pushback!!! Critics balk at private Medicare plan "gag order" Tue Sep 22, 2009 1:58pm EDTreuters.com By Susan Heavey WASHINGTON (Reuters) - Republicans, health insurers and others blasted the U.S. Medicare agency on Tuesday for what they called political interference over companies that want to directly contact customers about the impact of pending healthcare reform 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, on Monday said 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 that 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. "It looks likes CMS is engaged in government intimidation, pure and simple," Rep. Dave Camp, the ranking Republican on the U.S. House of Representatives Ways and Means Committee, said in a statement. Privately run Medicare plans, also known as Medicare Advantage, make up more than 20 percent of Medicare coverage, with more than 10 million elderly or disabled Americans choosing them over government-run fee-for-service plans.America's Health Insurance Plans, the lobbying group for Humana and other health insurance companies, called the CMS action a "gag order." Critics pointed to the direct intervention of Sen. Max Baucus, who urged CMS to get involved and said he welcomed the investigation of what he called "scare tactics" by Humana. CMS announced its Humana probe before Baucus's committee began work on his health reform bill on Tuesday. "... Baucus's latest bullying tactics are hard to believe by even these standards, as the Senate Finance Chairman has sicced federal regulators on the insurer Humana Inc for daring to criticize one part of his health bill," the Wall Street Journal wrote in an opinion piece. Camp pointed to AARP, the nation's largest lobby group for older Americans, which offers its own Medicare plan with UnitedHealth Group Inc, saying the group touts Democrats' healthcare reform efforts on its website. "CMS may be selectively and inappropriately using its regulatory powers," he wrote in a letter to CMS Acting Administrator Charlene Frizzera. But consumer advocacy groups welcomed the agency's move, saying private Medicare customers should not be directly targeted over political issues. "It's about time... that CMS is cracking down on plans using their enrollees as a captive audience for their political agenda," said Paul Precht, the spokesman for the Medicare Rights Center. He added that other, non-insurer companies such as oxygen providers have previously contacted customers over political issues. "No one is saying Humana or any other company cannot put out a position that articulates their belief," said Precht, whose group backs Democratic healthcare efforts. "What they're saying is they cannot send letters to their plan members under the guise of plan communication that is really political propaganda." CMS warned Humana it would take necessary enforcement action, and agency spokesman Peter Ashkenaz said Tuesday it is unclear when the investigation will conclude. The company has said it is cooperating with the probe. Ashkenaz added that CMS is not yet aware of other companies that have sent direct political mailings to enrollees. Aetna Inc, Cigna Corp and WellPoint Inc also offer Medicare plans. Medicare Advantage plans are already under intense scrutiny because they cost more than traditional Medicare. Independent advisers and others have urged Congress to curb payments to the plans to help bring down overall costs of Medicare, which faces potential bankruptcy as early as 2017. But America's Health Insurance Plans and its member companies argue 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," AHIP spokesman Robert Zirkelbach said. (Additional reporting by Donna Smith, editing by Gerald E. McCormick) © Thomson Reuters 2009 All rights reserved