NC| North Carolina Department of Insurance Bulletin 25-B-14 advises all North Carolina carriers and producers selling Medicare Supplement, Medicare Advantage, and Part D plans that reported practices restricting access to approved Medicare products or manipulating producer compensation may constitute unfair competition and deceptive acts under Article 63, and that filed, approved products must be marketed without artificial barriers or disincentives, including honoring any compensation assumed in approved rates.
Key Issues:
- The Department flags allegations that some carriers are limiting consumer access to certain approved Medicare plans (for example by removing applications, reducing plan availability, or steering toward preferred products), and states these practices can unlawfully harm Medicare-eligible consumers and distort competition.
- The bulletin specifically warns that actions such as discouraging producers from selling approved plans, changing or eliminating commissions mid-year, or withholding compensation built into rate structures are viewed as inappropriate and potentially unlawful under Article 63.
- NCDOI expects good-faith compliance with state and federal law, requires that approved plans be fully and fairly marketed with producer compensation implemented as filed, and cautions that it will monitor market conduct and may take enforcement action against carriers that manipulate the market or disadvantage consumers.