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State to investigate Medicare firms
Illinois is investigating two companies that sell Medicare drug and managed-care plans after receiving numerous complaints by seniors alleging high-pressure sales tactics and other marketing abuses, state officials said Friday.
Earlier this year, the Illinois Division of Insurance fined another company, Humana Insurance Co., $500,000 after finding that unlicensed agents were selling Medicare plans on behalf of that firm.
The state's actions come as federal authorities respond to a chorus of consumer complaints over marketing practices for two types of private Medicare plans with 25 million members: Medicare Part D and Medicare Advantage.
Proposed federal regulations, announced Thursday, would prohibit salespeople from making cold calls on s
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