PHOENIX--(BUSINESS WIRE)--Healthcare costs are a huge burden on seniors. After a year of rising inflation, changes to Medicare from the Inflation Reduction Act, and other economic issues, it’s critical for seniors and their caregivers to shop around for the best Medicare plan during Medicare’s Annual Enrollment Period from Oct. 15 to Dec. 7. Unfortunately, many seniors don’t know the truth about the Medicare brokerage industry.
Deceptive Marketing of Medicare Plans: Who Should You Trust?
Medicare brokerages, also called third-party marketing organizations (TPMOs), use deceptive advertising to enroll Americans in Medicare plans that don’t cover their medical needs, are too expensive, or both. The result is many Americans are matched with the wrong healthcare coverage which negatively impacts both their health and finances.
Brokers May Only Show A Fraction of Available Plans—Because They’ll Make More Money That Way
Medicare brokers encourage seniors to sign up for certain insurance plans, even if those plans aren’t the best ones for seniors’ financial situation or specific healthcare issues. Many Medicare brokerages hire aging celebrities to sell Medicare and Medicare Advantage plans on TV to seniors, often using language and visuals, such as American flags, to pretend that they are connected to the U.S. government. However, most Medicare brokers don’t offer all Medicare plans available to seniors. More often than not, TPMOs/Medicare brokers only present plans from 3 or 4 insurance carriers, or a subset of plans from insurance plans that pay them higher commissions. A typical county has more than 35 Medicare Advantage plans available and hundreds of Medicare plans across all types of medical and drug coverage.
Chapter, a technology-driven Medicare advisory company, aims to increase transparency and help seniors navigate this complex and murky ecosystem of Medicare choices, at a time when seniors are under tremendous financial pressures due to inflation, rising prices and coming changes to Medicare due to the Inflation Reduction Act, including an annual cap on drug costs.
“As inflation and costs of living continue to rise, it’s more important than ever to protect some of the most vulnerable people in the U.S.,” said Ari Parker, lead Medicare advisor and co-founder of Chapter, a free service that offers all available plans for seniors and whose brokers are not financially incentivized by higher commission plans. “Choosing a Medicare plan can seem daunting to most, and seniors need fully transparent guidance – and honest brokers – to ensure they get the medical coverage they need and can save as much money as possible.”
What to Consider When Choosing a Medicare Plan
There are a handful of key factors that should be considered when choosing the right Medicare plan. For example, what doctors someone sees as well as the prescriptions they take, what pharmacy they go to, whether they plan to travel abroad this year, or have dual residency—all impact what Medicare plan is right for that person. Choosing a Medicare plan without taking these things into proper consideration can have huge financial consequences, costing seniors thousands of dollars more every year.
Misleading advertisements often promise a lot—even home delivered meals—for little to no cost, while leaving out key details about the plan, such as the price of co-pays and whether one’s doctors will still be in-network. Brokers often use these tactics to push plans that are too expensive and do not cover enough healthcare costs. The results can be devastating, both financially, and potentially, to one’s health.
Greater Oversight Is Needed to Protect Consumers
Brokers using misleading advertising have not gone unnoticed by the federal government. Earlier this year, The Center for Medicare and Medicaid Services (CMS) stepped in to enact regulations to ensure greater transparency and reduce misleading activities by TPMOs selling Medicare Advantage (MA) and Medicare Part D prescription drug plans to beneficiaries. Medicare brokers are now required to disclose that they may not offer all plans available to beneficiaries. It’s a welcome change, one aimed at reducing the tens of thousands of complaints a year directed at TPMOs. However, it remains unclear if TPMOs are complying and whether seniors are aware of these misleading tactics, let alone these new regulations.
“CMS’s new regulation is well intentioned but misses the point,” said Cobi Blumenfeld-Gantz, CEO & Co-Founder at Chapter. “It’s astounding that consumers have no way to understand what perverse incentives influence those they rely on for Medicare guidance. These regulations won’t solve the information asymmetry or incentive misalignment issues pervasive in this industry.”
Choosing the Right Medicare Plan for You
Chapter’s free Medicare advisory team and technology platform searches every Medicare plan option nationwide—more than 24,000—to make the best possible recommendation. Chapter’s licensed advisors are not incentivized by commissions that favor any specific plan. Instead, they provide personalized, end-to-end guidance to Americans navigating Medicare and put consumers’ interests first. Ari Parker, Chapter’s co-founder and lead Medicare advisor, has also just written a best-selling book, titled “It’s Not That Complicated,” available on Amazon. For more information on how to order the book at a discounted price, go to www.askchapter.org/Ari.
For help selecting the right Medicare, seniors can contact Chapter at www.askchapter.org, or call (855) 900-2427.
About Chapter:
Chapter is a technology-driven Medicare Advisor with a simple commitment: it's impossible to find better Medicare guidance and support anywhere else. Chapter's licensed Medicare experts provide personalized, end-to-end guidance to Americans navigating Medicare. Chapter's platform supports older Americans in deciding when and how to sign up for Medicare and whether they can improve existing coverage to get better benefits for less. Additionally, Chapter has re-aligned incentives to place consumers' interests first, irrespective of the selected plan or carrier, ensuring that individuals receive recommendations tailored solely to their needs. Chapter hosts hundreds of educational events every year and partners with employers, financial advisors, benefits organizations, non-profits, and healthcare organizations. For more information, visit www.askchapter.org.
