CMS probing Humana letter aimed at seniors

The CMS is investigating Humana for sending a letter to Medicare enrollees alleging that they could lose their benefits under healthcare reform bills moving through Congress.

The letter tells beneficiaries that “millions of seniors and disabled individuals could lose many of the important benefits and services that make Medicare Advantage health plans so valuable,” according to the CMS. The letter, which was sent in an envelope that states it contains important information about beneficiaries' plans, also urges enrollees to contact their congressional representatives and protest the possible changes.

The CMS has instructed Humana to immediately stop all mailings and remove related materials on its Web site. The CMS said in a Sept. 18 letter to the Louisville, Ky.-based insurer that the correspondence to enrollees could violate the terms of its CMS contract and federal privacy laws. A Humana spokesman said the company is cooperating with the investigation.

The CMS launched the probe at the urging of Sen. Max Baucus (D-Mont.), chairman of the Senate Finance Committee. In a statement, Baucus condemned the letter as a scare tactic and said his committee's health reform proposal, released last week, would strengthen Medicare.

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