Unfair trade practices in marketing Medicare-related insurance to Delaware residents
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Bulletin governs marketing, compensation, and access practices for carriers and producers offering Medicare Advantage and Medicare Supplement plans to Delaware residents, prohibiting actions that restrict access to approved products or manipulate producer compensation.
Prohibited Practices and Access Restrictions
inv-01: Prohibited practices and obligations
The Department identifies the following practices as prohibited and actionable when they restrict access to approved products or manipulate compensation:
ALL of the following
Prohibited acts (any of the following)
- Failing to make enrollment applications readily available and easily accessible in all formats (e.g., printed, online, through appointed agents).
- Discouraging or dissuading producers from marketing or selling approved products.
- Modifying or eliminating producer compensation mid-year.
- Withholding compensation on products that were filed with compensation built into the rate structure.
- Creating internal policies or incentives that steer consumers away from certain approved products, regardless of suitability.
- Delaying or obstructing producer access to enrollment tools, training, or materials necessary to support sales.
- Retaliating against producers who raise concerns about compensation practices or consumer access barriers.
Carrier obligations
- Products that have been filed and approved for sale must be marketed without artificial barriers, discriminatory practices, or disincentives.
- If a product was filed with the expectation of producer compensation, carriers must honor that commitment; only carriers that explicitly filed plans with a documented zero-commission structure may avoid paying commissions.
Producer obligations
- Producers must prioritize the best interests of the consumer and assist individuals in selecting plans that best meet their needs, considering prescription drug coverage, provider access, overall cost, and affordability.
The Department considers discontinuing or suppressing commissions on filed products—particularly where agents were appointed, commissions historically paid, or no advance notice of zero-commission status was provided—to undermine consumer access and to violate Delaware law; such actions adversely impact fair competition in the Medicare market.
Covered Product Types and Compensation Rules
| No codes listed |
Obligations for Producers and Carriers
Producer and carrier obligations on compensation and consumer advice
Carriers must honor filed producer compensation commitments and may only withhold or eliminate commissions if the plan was explicitly filed with a documented zero-commission structure. Producers are required to act in the consumer's best interest and assist individuals in selecting plans based on drug coverage, provider access, cost, and affordability.
- Carriers and producers must act in good faith and comply with Delaware and federal law.
- Only carriers that explicitly filed plans with a documented zero-commission structure may avoid paying commissions.
- Producers must prioritize consumer interests and assist with plan selection considering prescription drug coverage, provider access, overall cost, and affordability.
Key Terms and Covered Individuals
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