County of Los Angeles Department of Consumer Affairs New Consumer Laws 2009

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MEDICARE – DECEPTIVE PRACTICES PROHIBITED

AB 2842, Health & Safety Code 1361.1, Insurance Code 790.037

Some sales agents sell Medicare Part D coverage (drugs) as a means to steer customers to products that generate greater profits for insurers and higher commissions for agents. As a result, some seniors have been enrolled in Medicare Advantage plans (drugs and medical care) they didn't want.

This new law prohibits "cold lead advertising," defined as the use of an appointment with the intent to market a Medicare program. This law also prohibits the use of an appointment made to discuss a Medicare product in order to solicit the sale of other Medicare products, health care coverage products, or health insurance products.

For more information:
County of Los Angeles Department of Consumer Affairs
B-96 Kenneth Hahn Hall of Administration
500 W. Temple Street * Los Angeles, CA 90012-2706
Telephone (800) 593-8222 (within the County) * (213) 974-1452
Web site: dca.lacounty.gov