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CMS investigates Humana letter to beneficiaries on health reform

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Centers for Medicare and Medicaid Services (CMS)

CMS has launched an investigation of Humana after questions were raised over letters it sent to its beneficiaries on the subject of health reform. Officials are looking into the issue of whether Humana used scare tactics when it reached out to Medicare Advantage members and took a stand on health reform legislation.

In the letter, Humana allegedly claims that current health reforms could hurt millions of senior and disabled individuals by taking away important benefits and needed services. The letter could possibly violate federal regulations, CMS leaders said.

CMS has now ordered Humana to stop sending out such letters. It's also sent out its own warning to every health plan that sells Medicare Advantage coverage, as well as those selling drug plans, informing execs that they could face legal penalties if they send out letters attempting to scare seniors into taking a health reform position.

The impetus for the CMS investigation came from Sen. Max Baucus (D-MT), who has spoken harsh words about Humana and any other insurer that might get mixed up in health reform politics.

To learn more about this issue:
- read this Kaiser Health News piece

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sounds like big brother censorship to me

I think Humana was telling their client members what will happen to Humana and its Medicare Advantage plans as a result of these reforms.

This is called FREE SPEECH and is protected by the Constitution of the US. Additionally, CMS grants Humana permission to communicate to members as necessary. If there was nothing "scarey" about the health reform proposals, then there would be nothing for Humana or other health plans to discuss with their members.

Since nothing is finalized, we don't know what may happen with healthcare, so it is a fact that reform COULD result in loss/reduction of service, as Humana has pointed out. I have yet to hear any politician say anything that I'd take to the bank regarding reform, but you can be sure that since the cost of healthcare is what's driving this push for reform, it will result in a benefit reduction. Having worked in healthcare (at an insurer and as management of a state employee health plan) for many years, the only way to guarantee cost reduction (or even cost stabilization) is to reduce benefits - unless you have a way to mandate provider participation and payment levels. If the reform that comes out of all this will require all providers to participate and set their reimbursement levels, then we may see a reduction in cost - but likely it will result in a reduction in quality, too.
I have no ties to Humana or any other insurer, but I find it laughable that the government is accusing Humana of scare tactics - isn't that the pot calling the kettle black? If the government hadn't use scare tactics about terrorism, we wouldn't be fighting two wars or have been reduced to herd mentality when trying to fly!

And yet it's OK for the President to be on EVERY liberal news outlet spewing the same crap without ever telling anyone HOW he's going to make his "nirvana" work? Give me a break. I don't see the gov't investigating ACORN yet!

I am a health care provider and I must say my experience in dealing with Humana has been awful. They do not pay their claims in any timely fashion. They pay inaccurately when they do pay. They don't follow their own guidelines when approving services and then disregard their own inhouse auditing when errors are found. If they aren't crooks then they are in need of serious mental health treatment for their disorganized thinking. The strange coincidence is that they always make mistakes in their favor. Hmmmm.

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