The feds crack down on Joe Namath and William Shatner ads

New rules aim to temper Medicare Advantage sales pitches

You’ve seen the tv ads - football great Joe Namath - or Star Trek legend William Shatner - pitch you on Medicare plans that will “add money back into your Social Security check,” deliver extra benefits and so on. I’ve posted an example below, just in case you somehow have missed out.

These ads are run by brokerages and marketing firms that earn commissions by referring enrollees to health insurance companies. Medicare officials say there’s been a surge in consumer complaints about misleading claims by these outfits, and the government has issued new rules aimed at tamping down the marketing. Brokers will be subject to tougher disclose rules, but most significantly, Medicare will hold insurers responsible for what their marketing agents say in ads.

The blizzard of marketing for Advantage plans - and Part D prescription drug plans add to the challenges retirees already face sorting through complicated plan options. The Commonwealth Fund has published research on the ways that brokers influence plan choices.

All of this comes as Advantage has grabbed nearly half of all Medicare enrollment. The Kaiser Family Foundation reports that that 48% of eligible Medicare beneficiaries are enrolled in Medicare Advantage plans. That’s 28.4 million people out of 58.6 million Medicare beneficiaries overall.

Regular readers know that I have some basic advice about Medicare Advantage: if you can afford to pay the premiums for Part D and Medigap, Original Medicare is by far the better deal, especially at the point of initial enrollment, when insurers are required to sell you a Medigap, and must offer the best pricing. Switching from Advantage to Original Medicare later on is technically possible, but may not be a practical option unless you can obtain a Medigap policy. I’ve written about this repeatedly, including here.

I’ll be writing more about Medicare Advantage as the fall Medicare open enrollment season gets closer (Did you forget? Open enrollment runs from October 15th through December 7th.).

What I’m reading

Retirement planning means more than saving in your 401(k) . . . Life expectancy plunges in “historic” setback . . . Here’s what a $2 million retirement looks like in America . . . How to comparison shop for over-the counter hearing aids . . . These states enjoy the greatest longevity . . . Planning for your retirement, and a child’s special needs . . . Full-time RVers take their jobs on the road . . . Preparing financially, before the storm hits . . . If you have long COVID, you’re not imagining it . . . Paxlovid is most effective in older patients . . . How long will the U.S. continue to disrespect its caregivers?