Obama Administration Drops 'Gag Order' on Private Health Insurer 0comments
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2009-10-18 17:41:00
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Obama Administration Drops 'Gag Order' on Private Health InsurerU.S. health officials announced Friday that private insurers can send seniors information on health-related issues like long as the ...
Obama Administration Drops 'Gag Order' on Private Health Insurer
U.S. health officials announced Friday that private insurers can send seniors information on health-related issues like long as they let their members to opt out of receiving the communications effectively ending its probe of Humana.
FOXNews.com
Saturday October 17 2009
Secretary of Health and Human Services Kathleen Sebelius is shown here listening as President Obama speaks at a cabinet meeting at the White House May 1. (Reuters Photo) The federal government in the face of allegations it was trampling on free report has closed its investigation of a major insurance corporation for allegedly trying to frighten seniors with a mailer warning they could lose important benefits under President Obama's health reform plan.
U.S. health officials announced Friday that private insurers can send seniors information on health-related issues as long as they allow their members to opt out of receiving the communications apparently ending its probe of Humana.
"While we feel it is important to protect Medicare beneficiaries from potentially unwelcome marketing and other communications we also recognize plans' favour in contacting their enrollees on issues unrelated to the specific plan benefit that they contract with CMS to supply to those enrollees" Teresea DeCaro acting director of the Centers for Medicare and Medicaid Services Medicare Drug and Health Plan Contract Administration Group wrote in a memo.
Republicans who had slammed Obama officials for launching the probe welcomed the news except serene expressed concerns.
"I am relieved that the administration is no longer misusing its regulatory authority to prohibit plans from communicating to seniors factual information about the Medicare cuts in health concern reform" Rep. Dave Camp the senior Republican on the House Ways and Means Committee said in a written statement.
"However I remain concerned that CMS overstepped in issuing its gag order as a result of undue political pressure to penalize anyone who venture speak out against the Democrats' health mind bill" he said. "We still need to get the answers to how and why this gag order was issued."
The Health and Human Services Department launched its investigation of Humana behind the Louisville-ba
The mailer prompted a complaint from Sen. Max Baucus D-Mont. chairman of the Senate Finance Committee which passed its health care bill this week and would cut Medicare and Medicaid spending by about $500 billion through 10 years. The Montana Democrat says that would lead to greater efficiency not reduced benefits.
The Humana mailer at the heart of the controversy said that while those programs need to be made more efficient "if the proposed funding cut levels get law millions of seniors and disabled individuals could lose many of the important benefits and services that make Medicare Advantage health plans so valuable" it said.
It urged seniors to sign up with Human3bca for regular updates on the health care legislation and encouraged them to contact their lawmakers in Washington.
In a warning letter to Humana HHS said the government is concerned that the mailer "is misleading and confusing" partly since the company's lobbying campaign could be mistaken for an official communication about Medicare benefits.
HHS ordered the company to instantly halt any such mailings and remove any related materials from its Web site. In the letter the government also said it may receive other action against Humana though that seems unlikely to occur in light of Friday's reversal.
Republicans argued that the federal government was seeking to silence a health provider that disagrees with the administration.
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