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CMS imposes temporary ban on automatic Medicare Advantage enrollment

Agency said it is reviewing its policies after some senior citizens were surprised to learn they were enrolled in Medicare Advantage.

Susan Morse, Executive Editor

The Centers for Medicare and Medicaid Services has announced a temporary moratorium on insurers from automatically enrolling their commercial, Medicare or Medicaid patients into Medicare Advantage plans.

CMS said it is reviewing its policies for allowing what is called seamless enrollment, in light of recent concerns regarding the practice.

Some senior citizens were surprised to learn they were enrolled in Medicare Advantage, Kaiser Health News reported in July.

[Also: Medicare Advantage attracting healthcare providers looking to run their own plans]

Prior to the Oct. 21 announcement, with Medicare's approval, a health insurer could enroll a member of its marketplace or other commercial plan into its Medicare Advantage coverage when that individual became eligible for Medicare.

The seamless conversion process requires the insurer to send a letter explaining the new coverage, which takes effect unless the member opts out within 60 days.

Medicare Advantage organizations already approved to offer seamless conversion enrollments will soon receive a memorandum clarifying current policy and requirements, CMS said.

[Also: Enrollment in 4 or 5-star Medicare Advantage plans rising, new star ratings show]

Twenty-nine Medicare Advantage organizations, including Anthem, Centene, Aetna and UnitedHealth Group, recently received approval for seamless conversion.

Along with a list of MA plans, the posted information on CMS's website outlines specific lines of business from which these organizations were permitted to enroll members into an MA plan.

Organizations that believe there is a discrepancy in the approval information must contact CMS no later than November 14.

Twitter: @SusanJMorse