CMS Places Marketing, Enrollment Freeze On Health Net Prescription Drug Plans

Main Category: Health Insurance / Medical Insurance
Article Date: 22 Feb 2008 - 12:00 PDT

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CMS has ordered California-based health insurer Health Net to stop marketing and enrollment for its "Health Net Orange" Medicare prescription drug plans, according to a notice on a government Web site, Florida Health News reports. The freeze was enacted because the company failed to process enrollment applications on time and sent members incorrect information about the changes in coverage for 2008, according to CMS spokesperson Allison Henry.

Members of the prescription drug plan who enrolled after Jan. 16, when the marketing and enrollment freeze took effect, will be given the option to switch to another Medicare drug plan, Health Net spokesperson Amy Sheyer said. The company is required by CMS to draft a plan to correct problems. "We're talking with CMS on a regular basis and working through the corrective action process," Sheyer said (Jaffe, Florida Health News, 2/15).

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