NM| The New Mexico Office of Superintendent of Insurance issued Bulletin 2025-012 to replace Bulletin 2020-013, strengthening consumer protections against deceptive marketing and advertising of excepted benefit health plans. The bulletin prohibits selling or advertising excepted benefit plans using terms or representations that imply equivalence to ACA-compliant major medical coverage; identifies specific deceptive practices—such as bundling limited-benefit products without required disclosures and misrepresenting benefits or coverage details—as violations; and outlines producer and insurer responsibilities to ensure transparency, warning that deceptive practices may result in significant penalties, including license or certificate revocation.
Key Points:
- Prohibits marketing or advertising excepted benefit plans as comparable to major medical/ACA-compliant coverage, including misuse of specific plan terms and descriptors.
- Identifies and bans a range of deceptive sales practices, such as undisclosed product bundling, misrepresentation of coverage, phone spoofing, and unapproved advertisements.
- Sets requirements for producers and issuers, mandating clear disclosure of producer identity and credentials, holding all parties accountable for misleading marketing with penalties including fines and license revocation.