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Humana Letter: GOP Defends Insurance Company's Misleading Anti-Reform Effort

The Huffington Post   First Posted: 11/23/09 05:12 AM ET Updated: 05/25/11 03:10 PM ET

Humana Letter

Humana Insurance company is under investigation by Medicare for sending a letter to senior citizens warning them that the government wanted to cut their benefits.

Sen. Max Baucus (D-Mont.), usually a friend to the health insurance industry, went after Humana hard. He urged the Centers for Medicare & Medicaid Services (CMS) to go after any insurance companies who are sending frightening letters to the elderly.

CMS complied. They wrote Humana:

CMS has learned that Humana has been contacting enrollees in one or more of its plans and alleging that current health care reform legislation affecting Medicare could hurt "millions of seniors and disabled individuals [who] could lose many of the important benefits and services that make Medicare advantage health plans so valuable." The message makes several other claims about the legislation and how it will be detrimental to enrollees, ultimately urging enrollees to contact their congressional representatives to protest the actions referenced in the letter...


CMS is concerned that, among other things, this information is misleading and confusing to
beneficiaries, represents information to beneficiaries as official communications about the
Medicare Advantage program, and is potentially contrary to federal regulations and guidance for the MA and Part D programs and other federal law, including HIPAA. As we continue our
research into this issue, we are instructing you to end immediately all such mailings to
beneficiaries and to remove any related materials directed to Medicare enrollees from your
website.

Read the whole letter.

CMS also sent out an official memorandum to all sellers of private Medicare coverage and drug plans for seniors warning them not to follow Humana's example.

CMS has recently learned that some Medicare Advantage (MA) organizations have contacted enrollees alleging that current health care reform legislation affecting Medicare could hurt seniors and disabled individuals who could lose important benefits and services as a result of the legislation. The communications make several other claims about the legislation and how it will be detrimental to enrollees, ultimately urging enrollees to contact their congressional representatives to protest the proposals referenced in the letter.


Our priority is ensuring that accurate and clear information about the MA program is available to our beneficiaries. Thus, we are concerned about the recent mailings as they claim to convey legitimate Medicare program information about an individual's specific benefits or other plan information but instead offer misleading and/or confusing opinion and conjecture by the plan about the effect of health care reform legislation on the MA program and other information unrelated to a beneficiary's specific benefits.

Republicans, predictably, defended the insurance companies and accused Baucus of infringing on their free speech.

"It is outrageous that the Obama Administration is trying to keep seniors in the dark about the consequences of congressional Democrats' costly government-run health care bills. Would the Administration impose this sort of gag order if seniors were being given information promoting the Obama health care plan? I don't think so," said Minority Leader John Boehner (R-Ohio).

Baucus insisted that the insurers have no right to mislead seniors into believing that Medicare benefits would be cut.

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11:26 AM on 09/24/2009
My Feeling is This Company has a right to free speech Even if that Speech is not true.
11:15 AM on 09/24/2009
Once again the Republicans ignore the law and cry fowl when the law doesn't suit them.

For a party supposedly in favor of "law and order" these folks clearly are ready to chuck the law more and more frequently when the law doesn't support what they want to happen

(ref: HUMANA, ACORN, giving jobs to and buying off relatives of mistresses in sex scandals, etc.)
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HUFFPOST COMMUNITY MODERATOR
dwillisno1
Learning to Butt Heads Without Being Buttheads
11:02 AM on 09/24/2009
Humana temporarily forgot that theyn are supposed to speak through lobby bots and well bought off congress persons.
09:00 AM on 09/24/2009
If the "gag" order is because they receive gov't money and cannot get involved in politics or inform the public then why is there not a "gag" order on AARP?
This is a clear case of abuse of power and a violation of freedom of speech.
AARP is behind it because they stand to benefit by selling add on coverages.
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HUFFPOST SUPER USER
webwriter
09:13 AM on 09/24/2009
Or maybe AARP is telling the truth -- a novel concept!
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HUFFPOST SUPER USER
JeanPaulSatire
Wordsmith, liberal, skeptical idealist, 99%er.
12:37 AM on 09/24/2009
The little GOP boys are just jealous because they lack the ability to gag anyone.
12:43 AM on 09/24/2009
I disagree, everything they do gags me.
http://pnhp.org
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HUFFPOST SUPER USER
JeanPaulSatire
Wordsmith, liberal, skeptical idealist, 99%er.
07:43 AM on 09/26/2009
Touche!
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HUFFPOST COMMUNITY MODERATOR
Emerald1943
10:59 PM on 09/23/2009
Well, at least Sen. Baucus is doing something right. Now, if he and others would call out Grassley and the rest who have contributed to the lies and distortions.
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09:58 PM on 09/23/2009
The rich started class war,we the people will finish it.Get in the streets go to the houses of CEO's and tell them really how you feel.
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wonketteRAWKS
Hypocrisy is prevalent in BOTH parties!
09:51 PM on 09/23/2009
Yet even as they prevailed on politically charged votes, majority Democrats also tacitly conceded one point — that despite a pledge by President Barack Obama, some seniors who receive coverage from private insurers could lose some of the optional benefits they enjoy.

http://news.yahoo.com/s/ap/us_health_care_overhaul;_ylt=AobFYxx9q62SWbPXyZp07qas0NUE;_ylu=X3oDMTM1cnU1aGxvBGFzc2V0A2FwLzIwMDkwOTI0L3VzX2hlYWx0aF9jYXJlX292ZXJoYXVsBGNwb3MDMgRwb3MDNwRwdANob21lX2Nva2UEc2VjA3luX3RvcF9zdG9yeQRzbGsDc2VuYXRvcnNzcGFy
08:57 PM on 09/23/2009
gag order? I gagged without any order to do so. frankly, I think a criminal investigation is in order.
HUFFPOST COMMUNITY MODERATOR
janehenry
08:36 PM on 09/23/2009
Every insurance company I worked for had a policy where all letters sent out had to have been approved by corporate before anyone was allowed to send something out. CMS has the same policy regarding any letter sent to Medicare recipients by those insurance companies who agreed to these standards. Humana did not get prior approval and sent a letter that did not meet CMS standards and which contained false information.
01:01 AM on 09/24/2009
It says cuts will be to Medicare Advantage. Medicare Advantage was a corrupt plan put through with the R's 2003 Reform act including Medicare D. the free gift to pharma.
The insurance companies that accommodate Medicare Advantage, like, inHumana recieve 14% reimbursement rate directly back to them, rather than the typical 3 to 4 % that other non Adavantage health insurance companies receive. That is what inHumana is complaining about. THEY won't be making as much profits.
The plan for the cuts ahead for Medicare are NOT for Medicare recipients, but only for the insurance companies that accommodate Medicare Advantage, instead of the 14% profits, they will make less.
If inHumana decides to pass the less profits they will make on the consumers, it wouldn't surprise me a bit, they are quite heartless.
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HUFFPOST SUPER USER
Enigma2008
Still 99% @BlueGoatNews
07:27 PM on 09/23/2009
Do any of you supporting Humana have elderly family members on Medicare? One of the reasons that this is immoral as well as in violation of their contract is the vulnerability of the elderly in dealing with health care.

Medicare is structured so that, once you are enrolled, it runs almost on autopilot. You have your card, you get care. Insurance companies were given access to the Medicare rolls with rules attached to protect the elderly from devious marketing ploys. Normal informational communication related to the actual coverage is allowed.

If you haven't been there you don't know how a threatening-souding letter from your health-care insurer can destroy the peace of mind of this population. Talk to your 80-something year old grandparents. That's why it is prohibited. It has nothing to do with free speech. They violated a trust they should have had with their clients to promote their own selfish interests. Hang 'em high!
10:44 PM on 09/23/2009
Not a lie if you have medicare advantage...Medicare cuts will produce cuts in benefits per the CBO See above.
07:11 PM on 09/23/2009
I hope these Seniors manage to get some decent uncorrupted information ...

Read up on it at the Library maybe.
HUFFPOST SUPER USER
MacTheBlogger
I used to be disgusted...
02:47 PM on 09/23/2009
From the AP today:

"Congress’ chief budget officer is contradicting President Barack Obama’s oft-stated claim that seniors wouldn’t see their Medicare benefits cut under a health care overhaul.The head of the nonpartisan Congressional Budget Office, Douglas Elmendorf, told senators Tuesday that seniors in Medicare’s managed care plans would see reduced benefits under a bill in the Finance Committee."

Also, during the Senate Finance committee's markup meeting last night, a witness had to admit that seniors WILL see their Medicare Advantage plan benefits CUT under the Baucus bill.

So, it turns out, Humana is right. Somehow I doubt they're expecting an apology.
03:07 PM on 09/23/2009
Let's not let a few facts get in the way of good OUTRAGE by the left.
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HUFFPOST PUNDIT
Gidster
Not so much Liberal as I am anti evil.
04:11 PM on 09/23/2009
It is simply against the rules set up by the Medicare program to do what Humana is doing....

Also, don't let the fact that the Baucus bill is not the only bill on the floor, and will most likely not pass, get in the way of your outrage.......

Humana broke the rules. Period. Does not matter if they turned out to be correct about something in it that did not exist at the time of the letter......
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annie0107
Mickey's a good kitty!
03:49 PM on 09/23/2009
Humana has been contacting enrollees in one or more of its plans and alleging that current health care reform legislation affecting Medicare could hurt "millions of seniors and disabled individuals [who] could lose many of the important benefits and services that make Medicare advantage health plans so valuable."

Can someone get specific with their facts, i.e., how many would be affected, what benefits would be reduced and plan benefits cut, or are we just going to go on with dueling opinions.
HUFFPOST SUPER USER
MacTheBlogger
I used to be disgusted...
04:11 PM on 09/23/2009
The specific cuts in benefits will depend on the insurer and the plan. They'll have less to work with, so examples would be things like higher co-pays for doctor visits, higher co-pays for hospitalization, testing, emergency, etc., and/or higher premiums for the plan. Or you may see benefits like dental/vision dropped from the plans.

Since every dollar matters to seniors, higher costs would hurt. And that's the original point. We can believe the White House, or we can believe the CBO. Based on history, I expect cost "estimates" to very, very understated.
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HUFFPOST PUNDIT
Gidster
Not so much Liberal as I am anti evil.
07:27 AM on 09/24/2009
It is bogus information.

Ginned up to fight the cuts in subsidies to for profit insurance from the government.

They want to keep premiums high, maintain their subsidies and still deny 1 in 5 claims.
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ydnas639
I want my country forward
02:22 PM on 09/23/2009
The GOP is "up in arms", period.

Just natural selection. Zealotry lends itself to less actual knowledge/understanding/credibility/ability/etc. Today's GOP is a prime example of evolution in action.
HUFFPOST SUPER USER
MacTheBlogger
I used to be disgusted...
02:54 PM on 09/23/2009
Plenty of closed-minded zealotry on both ends of the political spectrum, and both sides point the finger at the other and scream, "yeah, but THEY'RE even WORSE!"
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10:55 PM on 09/23/2009
Meanwhile, back at the ranch, the Corporate Establishment is a very, very accomplished "Agent Provocateur" and is laughing all the way to the Bank...
02:19 PM on 09/23/2009
If they hadn't notified their customers that there was a change coming, health care reform advocates would be using the "sudden changes" in coverage as an example of how bad insurance companies are and why the government should take over health care!!
02:38 PM on 09/23/2009
That's a load of Bull.

If these alleged 'sudden changes' happen after health care reform passes, how can the 'government' use them as proof of bad insurance before it passes?
02:42 PM on 09/23/2009
They will use them as an example of why the government needs to take MORE control and take over the entire health care system!!