DE| The Delaware Department of Insurance Bulletin (DE DF No. 162 and Producer & Adjuster Bulletin No. 39, dated October 31, 2025) addressing unfair trade practices related to the marketing of Medicare Advantage and Medicare Supplement insurance products to Delaware residents eligible for Medicare. The bulletin clarifies the Department’s position on actions such as restricting access to approved products, manipulating producer compensation, and other practices that may violate Delaware law and federal Medicare statutes. It emphasizes the legal and ethical responsibilities of carriers and producers to market approved products without artificial barriers or discriminatory practices, and it outlines enforcement actions for non-compliance.
Key Points:
- The bulletin specifically prohibits carriers from restricting access to Medicare products, manipulating producer compensation, or using internal incentives to steer consumers, noting that such actions may constitute unfair trade practices under Delaware law and violate federal guaranteed availability protections.
- The Delaware Insurance Department warns that discontinuing or reducing commissions, withholding compensation, or retaliating against producers who raise concerns harms competition and consumer access, and will result in enforcement actions including possible license suspension or administrative penalties
- Carriers and producers are reminded to review all compensation, marketing, and enrollment procedures for compliance; only products explicitly filed as zero-commission are exempt from commission payment requirements, and the Department will actively monitor for violations.
Click here to see DE DF No. 162 and Producer & Adjuster Bulletin No. 39