Humana and other six private health care insurers have agreed to stop selling and marketing their health plans to seniors.  

According to Centers for Medicare and Medicaid Services the other six agencies that voluntarily suspended their the so-called "private fee-for-service" plans are United Health Care, Wellcare, Universal American Financial Corp. (Pyramid), Coventry, Sterling and Blue Cross/Blue Shield of Tennessee

“Protecting our nation’s seniors through the integrity of the Medicare program is vitally important,” said Michael B. McCallister, Humana’s president and chief executive officer. “We take very seriously this pledge to partner voluntarily with CMS and our peers as we pause, step back and make necessary changes. It is consistent with our long-standing commitment to continuous quality improvement through our 20 years as a trusted Medicare contractor. We believe first and foremost that seniors will benefit from these changes. Second, due to our unique distribution model with its emphasis on a large employed sales force, we believe Humana’s competitive position will be strengthened when we re-enter the individual PFFS market.”

In a press statement, WellCare said that it has previously announced enhancements to its compliance program for its PFFS products, including an inbound telephone enrollment and verification process and a “secret shopper” program using an independent organization to anonymously monitor field marketing activity.

The sales of the plans will be suspended until the Centers for Medicare and Medicaid Services certify that each company has systems and management controls in place to meet all conditions specified by the agency.

"Once they resume marketing, they will be strictly monitored as will everybody else be strictly monitored though the secret shopper process, through the complaint process and through the eyes and ears of CMS and the (Senior Health Insurance Counseling Program) and other partners out in the community," said Abby Block, director of the Center for Beneficiary Choices with CMS.

Between December 2006 and April, the administrators of Medicare received 2,700 complaints about fraudulent marketing activities, Block said.