A major expansion of Medicare went into effect on January 1, 2006. Prescription drug coverage for seniors, known as “Part D” was passed by Congress last year. Under the new law, Medicare will pay part of the cost of the prescription drugs for those who sign up for managed-care plans offering drug coverage or who purchase policies from private insurers.

Insurance agents may receive proposals from “insurance entities” to become insurance producers for Part D prescription drug programs. PIA’s Pat Borowski recently wrote about the need for agents to properly and fully evaluate such offers to make sure they are legitimate and that they comply with the law.

“As a state licensed, authorized insurance producer for your resident and non-resident states, you are required to only do business with ‘authorized’ insurance entities and offerings,” Borowski notes. “With the effective date of the new Medicare prescription drug program drawing nearer, there will be an ever-increasing number of entities coming forward with prescription drug offerings. Some of them will be legitimate and some of them will not be. It is your responsibility as a licensed insurance professional to ensure that you only recommend to your insureds prescription drug plans that meet all current and future requirements, federal, state and local.”

The full article is available to PIA members here on PIANET using the link below.

Make Sure Medicare Drug Offerings are Legitimate (Article by Pat Borowski)

January 4, 2006