Keywords: USA, FTC, HHS, Medicare, Rx drug benefits

US FTC comments to HHS on providing consumers better info on Medicare Advantage and Rx Drug Plans

Article | 17 December 2009

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The USA’s Federal Trade Commission has submitted a comment supporting a proposed rule by the US Department of Health and Human Services that is designed to improve the information that health insurers give to enrollees in Medicare Advantage and Medicare prescription drug benefit plans, so that such people can better select a plan that suits their needs. The FTC says it supports the HHS’ proposed rule changes, because these will help reduce enrollee confusion and make it easier for consumers to compare plans.

The HHS’ proposed rule, “Policy and Technical Changes to the Medicare Advantage and Medicare Prescription Drug Benefits Programs,” would standardize consumer information disclosures and require health insurers to offer enrollees a choice of significantly different plans. According to the FTC comment, which can be found on the agency’s web site (http://www.ftc.gov), these two changes would spur greater competition among Medicare Advantage and prescription drug plans.

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To be most effective, the comment states, the standardized disclosures should be based on objective tests of how well consumers understand them, and they should be updated regularly. The comment also suggests that the HHS explores ways to permit third parties to use health insurers’ claim and performance data to develop quality measures that further consumer choice and competition.

The vote approving the Commission’s comment to the HHS was four to nil.