MINNEAPOLIS (AP) - Diversified health care company UnitedHealth Group Inc.
said Monday it received approval from the Centers for Medicare & Medicaid
Services to resume marketing its Medicare Advantage Private-Fee-For Service
plans to individuals.
UnitedHealth was one of seven sponsors that voluntarily suspended marketing
of PFFS plans earlier this year, following concerns related to marketing
practices.
The other sponsors were Humana, Wellcare, Universal American Financial Corp.
(Pyramid), Coventry, Sterling and Blue Cross/Blue Shield of Tennessee.
A PFFS is a Medicare Advantage health plan offered by a sponsor, like
UnitedHealth, which has a yearly contract with the CMS to provide beneficiaries
with Medicare benefits plus any additional benefits the company decides to
provide.
Senate staffers said earlier this year that some seniors who sign up for a
privately run Medicare Advantage plan do not understand they are leaving the
traditional government-run program, Medicare.
On the other side, industry officials say Medicare Advantage plans offer
beneficiaries extra benefits not available in traditional Medicare, such as
dental and vision coverage.
As a result, CMS, which decides government payments under the two federal
health programs, conducted marketing reviews to see if internal controls and
oversight processes were consistent with regulations and guidance for Medicare
private-fee-for-service plans.
UnitedHealth's announcement follows a statement Monday by CMS that the
agency completed its review and determined UnitedHealth has shown accelerated
compliance with their 2008 marketing requirements.
Based in Minneapolis, UnitedHealth offers a spectrum of products and
services through six operating businesses: UnitedHealthcare, Ovations,
AmeriChoice, Uniprise, Specialized Care Services and Ingenix.
Shares of UnitedHealth fell 36 cents to $49.55 in morning trading.
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