States Seek More Insurance Authority

"Typically, we regulate proactively to prevent abuses rather than react," Dilweg said.

The white paper represents a landscape of elderly-related issues. A road map of the rules for Medicare were discussed in a sub-group with input from various parties, including state insurance regulators, the Centers for Medicare and Medicaid Services (CMS), industry groups such as AHIP and Humana(HUM Quote), consumer groups including the AARP and the Kaiser Family Foundation.

The white paper is a discussion document representing differing points of view and is intended as a working document for policy makers. Two of the points were enshrined into law two months ago when the new Medicare Improvement for Patients and Providers Act was passed, banning cold calling, door-to-door sales and cross-selling of non-health products.

"It is a very good start," said Dilweg.

Dilweg said the larger issue is state authority. He has already testified before Congress' Ways and Means health sub-committee. He will be working through Sen. Herb Kohl of Wisconsin, chairman of the Special Committee on Aging, to reintroduce legislation, first revealed in 2007, in the next session.

"We applaud the significant strengthening of the rules to counter street-level agent abuses seen in the past three Medicare Advantage enrollment periods," said Bryce Williams, president and CEO of Extend Health, an authorized enrollment agency for Medicare Advantage plans.

Some of the suggestions made by state insurance regulators include:

• Rolling back federal preemption provisions over Medicare Advantage and Part D prescription coverage plans to the way it was prior to the MMA, in order to allow states to better protect consumers.
• Discouraging the use of vague and confusing plan names.
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• Developing suitability standards in the sale of all Medicare private plans.
• Requiring agents and brokers to meet state continuing education requirements.