News: 2009 Press Release

Insurance Commissioner Steve Poizner today urged Bay Area seniors to protect themselves from agents and brokers who routinely seek to take advantage of seniors.

"While the vast majority of agents act within the law, some engage in aggressive or deceptive sales practices during open enrollment for Medicare Advantage plans and the Medicare Prescription Drug Program," said Commissioner Poizner. "Seniors and their families should be cautious and arm themselves with as much information as possible, and if anyone has a suspicion that they are being taken advantage of, I urge them to contact the Department of Insurance immediately at 800-927-HELP."

Open enrollment for Medicare Advantage plans and the Medicare Prescription Drug Program begins on November 15, 2009. Between now and the end of the open enrollment period on December 31, 2009, many insurance agents will engage in vigorous marketing and sales efforts.  

Consumer education is the key to fighting unscrupulous and illegal sales practices. To that end, Commissioner Poizner has reached out to seniors facilities, requesting that administrators and staff join CDI in a statewide effort to protect seniors by posting and distributing useful tips for combating these illegal tactics. By sharing some simple tips, Commissioner Poizner aims to greatly reduce improper Medicare-related sales practices aimed at seniors.  

Commissioner Poizner offers the following tips to help seniors protect themselves against predatory insurance sales practices during open enrollment for Medicare Advantage plans and the Medicare Prescription Drug Program: 

• Make Sure They're Licensed: Not all people marketing Medicare Advantage plans are insurance agents. If the person you are dealing with claims to be an insurance agent, contact the California Department of Insurance or visit www.insurance.ca.gov to verify license status. Insurance agents are required to print their license number on all business cards, quotations, and advertisements. Also, verify that the insurance company is licensed to do business in California.  
• Cold Calls Prohibited: Federal regulations prohibit "cold calls" which may take the form of uninvited sales calls, door-to-door visits, unsolicited emails, telephone calls or any other type of sales contact without your express invitation.
• Be Stingy with Personal Information: Never give out personal information such as your Social Security number, bank account numbers or credit card information over the phone. Verify that the person you are dealing with has proper authority to act on behalf of the plan before you provide your Medicare number. This is a good time to seek assistance from a trusted relative, friend or advisor.
• Medicare Has No Official Sales Reps: Be wary of any salesperson who says that he/she is a Medicare representative. Medicare does not send "representatives" to solicit your business. 
• No Marketing in Educational or Care Settings: Federal regulations prohibit the marketing of Medicare products in places where health care is delivered (such as a doctor's office, clinic, or pharmacy counter) or at an educational event.
• No Such Thing as a Free Lunch: Federal regulations prohibit offers of free meals for listening to a sales presentation or for signing up in a particular plan.
• Don't Let Them Oversell You: Federal regulations prohibit selling additional insurance products during any sales or marketing presentation for a Medicare Advantage or Prescription Drug Plan.
• Read and Understand the Plan: Be sure that the plan that you choose matches your needs and that you can continue to see your current health care providers if you wish. It may be very difficult or even impossible to "undo" your selection later. 
• You have rights! Contact the California Department of Insurance at 1-800-927-HELP (4357) or visit our website at www.insurance.ca.gov, if you have any questions about an insurance offer, scheme or agent.
• Additional Info: Information about Medicare is available at 1-800-MEDICARE (1-800-633-4227) or www.medicare.gov or the California Department of Aging Health Insurance Counseling and Advocacy Program (HICAP) at 1-800-434-0222 may be able to assist you.

Please select the link to view the senior advisory.