Senior Move Managers

Aggressive efforts by insurance giant Humana (HUM ) to enroll seniors in its Medicare managed-care plans violate federal guidelines, the ranking Democrat on the House Ways & Means subcommittee on health has charged.

Representative Pete Stark (D-Calif.), in a Jan. 26 letter to top officials at the federal Centers for Medicare & Medicaid Services (CMS), said Humana’s practice of paying higher commissions for Medicare Advantage plans “is violating CMS regulations.” Stark claims the agency’s marketing rules bar insurers from paying higher commissions for a more profitable product. Stark, who cited a BusinessWeek report in his letter, asked for an immediate investigation of his allegations. According to a Stark aide, other managed-care companies may also be engaging in the same practice.

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