CMS CALL RECORDING – 9/1 UPDATE

First, if you are not a member of NAHU and HAFA, you NEED TO BE. There is so much happening behind the scenes to try and get this final rule delayed/overturned but being a member of YOUR trade group helps these efforts immensely. Full Transparency: My comments are my own, but I find that having powerhouses behind us gets the government to move at a brisker pace to address misalignments. This is solely why they are mentioned.

// MEDIA via NAHU

Justin Brock was featured in Newsweek here: https://www.newsweek.com/medicare-expert-medicare-advantage-third-party-marketing-compliance-misses-mark-1727226

I was featured in Insurance News Net here: https://insurancenewsnet.com/innarticle/commentary-cms-medicare-recording-requirement-could-risk-senior-data

Janet Trautwein (CEO of NAHU) and I worked with WSJ here: https://www.wsj.com/articles/celebrity-medicare-sales-pitches-are-toned-down-after-scrutiny-11661940999

// WSJ Article

I want to give a bit of context about the last article, in case you haven't seen it just yet. Reporter Leslie Scism saw Janet at an NAIC event where Janet was talking about this recording requirement. Leslie and I spent weeks discussing the Medicare Advantage markets, the influx of private equity, and several companies that prioritize “apps per day” over “seniors helped.” I reiterated repeatedly that as a member of our community, we receive most of our clients from other clients and strategic alliance partners that we took the time to understand their needs and helped them…so, when a friend or family member is bombarded with information, they hand out our name. Conversely, many call centers and TPMO’s are forced to buy leads, because they operate like a factory line, regardless of where the beneficiary came from, they are the raw materials that are needed to keep agents happy and “enrolling aggressively.” I pulled financial documents from GoHealth and Select Quote to show in their actual financial statements where they disclose, they may not always be in compliance.

All that said, I was clear to state that the “complaints” mentioned both in the WSJ and in CMS’s comments represent less than 0.001% of total Medicare enrollments.

We have made this joke that if 0.001% of enrollments have a complaint, which means 99.999% of enrollments are without complaint. And, if Lysol is only 99.9% effective at killing germs, you do not see regulators rushing to pull Lysol off the shelves!

After the article was released, I received an email from Leslie. She indicated that with 29 years as a reporter, she usually has good instincts on what will be a first page article, and what is not. Where the first page affords a reporter 1900-2000 words, she had trimmed to about 1100 words. With this aggressive reshuffle, neither my comments about the proportion of complaints, nor NAHU’s involvement was in the final piece.

Each of us has a choice to look at every event as an obstacle OR an opportunity. I would like to believe most entrepreneurs try to find the opportunity in everything. So, while I am saddened that the result highlights the bad eggs without referencing the overwhelming number of good eggs in our industry, here is my silver lining.

1.?????Anything that can get these sham commercials off the air not only helps beneficiaries but also brokers who suffer in their wake.

2.?????Leslie has informed me that she is working on another project that would add context and our commentary. She stated it would be out as we get closer to October 15th, but that does not help us now with the actual recording deadline.

3.?????The WSJ article is still a public artifact with incredible due diligence to address CMS with and ask for an extension to see if tamping down on commercials, impacts reported complaints.

?// NAHU outside of Media

Leadership met with the actual policy maker that drafted this provision.

Janet Trautwein wrote three separate letters to CMS requesting reconsideration and/or deferral.

Today there will be an “operation shout” sent out by Marcy Buckner that we HIGHLY recommend you send to your representative.

On August 12th, carriers from around the country met with CMS and NAHU is in the loop.

NAHU coordinated with NAIFA, Big I, PIA, and CIAB to send commentary to CMS with a joint force.

The same agency partners listed above are sending coordinated info to regulators with their respective versions of “operation shout.”

?// HAFA outside of the Media

HAFA coordinated with CCIIO to identify the points of contact within CMS to address.

On August 12th, Ronnell Nolan of HAFA met with CMS officials, and we are currently working out a response letter to address takeaways from that meeting.

Ronnell and I will likely be in DC in the coming weeks to hold agency and congressional in person meetings regarding this issue.

?// Myself + NAHU & PAHA

George Violand, Michele Malooley, Dawn McFarland, I, NAHU office of Government Affairs, Justin Lubenow, Scott Wham, HAFA, and several other parties have been in close dialogue regarding moving this ball forward.

George and I met with Congressman Smucker (PA), who is on the house ways and means committee to address the concern about recording and storing senior citizen data via call recordings with a 10-year retention requirement. The congressman agreed that this was burdensome to small businesses (you and I) and a risk to seniors that was caused by the agency. Rep. Smucker also stated he is willing to write a letter and get consigners to send to CMS requesting a revisit of this rule. He referred us to his health care staffer who will draft the letter, and we are awaiting a response.

?// HOW YOU CAN GET INVOLVED

Reach out to your representatives!

Send the “Operation Shout” (It is a few clicks but goes a long way!)

-?????????Both operation shout and to find your representatives go here: https://nahu.quorum.us/action_center/

Contact the media in your area to make sure they are aware of this issue.

-?????????Tools to talk to the media here: https://nahu.org/chapter-resources/media-tools/media-advisory