Medicare Part D Marketing

The State of New Hampshire

Insurance Department

21 South Fruit St., Suite 14

Concord NH 03301-2430

(603) 271-2261 Fax (603) 271-1406

TDD Access: Relay NH 1-800-735-2964

Roger A. Sevigny

Commissioner

BULLETIN

Docket Number: INS 05-044-AB

TO:

All Licensed Health Insurance Producers

FROM:

Roger A. Sevigny, Insurance Commissioner

DATE:

October 27, 2005

RE:

Medicare Part D Marketing

Since Oct. 1, 2005, marketing activity for the new Medicare prescription drug benefit,

Medicare Part D, has been permissible. According to the Centers for Medicare &

Medicaid Services (CMS), only state-licensed insurance producers may engage in

marketing activity. The Medicare Modernization Act does not preempt producer

licensing laws. Thus, state law and regulatory provisions regarding producer activity

apply to the marketing of Medicare Part D.

CMS has received complaints about alleged misconduct by licensed producers with

regard to Medicare Part D marketing. CMS will refer complaints it receives about

producers licensed in this state to the New Hampshire Insurance Department. This

bulletin reminds licensed producers that they are subject to all laws and regulations of

this state, including those relating to the duty of good faith and fair dealing, the suitability

of sale, and the prohibitions against misrepresentation, churning, and high pressure sales

tactics.

We view with a high degree of skepticism the use of a lead relating to Part D marketing

activity to cross-sell other insurance products of any type. The new Part D benefit is

fundamentally confusing for the Medicare beneficiary. It would be unwise for the

producer to take advantage of the Part D lead to sell other insurance products to a

Medicare beneficiary for which he or she may not be suited.

Allegations of misconduct related to Part D marketing will be thoroughly investigated by

this office

-sell other insurance products of any type. The new Part D benefit is

fundamentally confusing for the Medicare beneficiary. It would be unwise for the

producer to take advantage of the Part D lead to sell other insurance products to a

Medicare beneficiary for which he or she may not be suited.

Allegations of misconduct related to Part D marketing will be thoroughly investigated by

this office. Any proven misconduct will be prosecuted under the laws of this state relating

to producer licensing, unfair and deceptive insurance practices or other relevant law.