RICHMOND -- All Virginia-licensed insurance companies and agents engaged in the marketing and sale of the Medicare prescription drug benefit have been urged to adhere to Medicare Part D marketing guidelines. The State Corporation Commission’s Bureau of Insurance is prepared to investigate any allegations of misconduct including those referred by the Centers for Medicare and Medicaid Services.

      Virginia Commissioner of Insurance Alfred W. Gross recently sent an alert letter to licensed companies and individuals after being made aware of certain practices the Bureau considers inappropriate for the market. His letter strongly cautions against engaging in such activity and promises that the Bureau will take appropriate action against any person found to be in violation.

      Marketing of the Medicare prescription drug benefit has been permissible since October 1, 2005. Only state-licensed insurance agents may engage in marketing activity.

      Individuals selling or promoting Medicare Part D products should not engage in any of the following practices:

     Any persons concerned that they may have experienced such misrepresentations or marketing practices are encouraged to contact the SCC’s Bureau of Insurance. Consumer service representatives are available Monday through Friday, 8:15 a.m. to 5 p.m. at 800-552-7945 (toll free), or the direct number at 804-371-9691 (Life and Health section).

Administrative Letter 2005-14