FOR IMMEDIATE RELEASE, Tuesday, December 4, 2007
CONTACT: Yoni Cohen, Stark (202) 225-3202

WASHINGTON, D.C. – Representative Pete Stark (D-CA), Chairman of the Ways and Means Health Subcommittee, today responded to reports that President Bush would oppose Congressional action to grant states the authority to regulate marketing abuses by so-called “Medicare Advantage” plans.

“President Bush is a wholly-owned subsidiary of the insurance industry,” said Stark. “How else to explain his opposition to enabling states to investigate and prosecute private insurance companies that deceive seniors? Congress is working in a bipartisan fashion to make sure that so-called ‘Medicare Advantage’ plans stop misrepresenting their products and misleading Medicare beneficiaries. Instead of defending big insurance companies that contributed to his campaigns, President Bush should join Congress to protect America’s seniors and people with disabilities.”

At insurance companies’ request, the Medicare Modernization Act of 2003 specifically stripped state insurance commissioners of their ability to review and regulate the conduct of so-called “Medicare Advantage” plans. As a result, private companies have been able to market their plans with reckless abandon. Among their most egregious abuses: providing incorrect information about which drugs and doctors were available through their plans, taking advantage of beneficiaries with limited-English proficiency, and failing to resolve large backlogs of claims and complaints and answer customer questions. They’ve also improperly terminated coverage for and denied drugs to people with H.I.V. and AIDS.