What is one key goal of the Omnibus Budget Reconciliation Act (OBRA) regarding Medigap?

What is one key goal of the Omnibus Budget Reconciliation Act (OBRA) regarding Medigap?

• A. To simplify medical billing practices
• B. To eliminate questionable marketing practices
• C. To encourage the sale of Medicare Advantage plans
• D. To increase the premium rates for Medigap

Answer: (B)

One of the key goals of the Omnibus Budget Reconciliation Act (OBRA) regarding Medigap is to eliminate questionable marketing practices. This legislation was aimed at protecting consumers who are purchasing Medigap policies by establishing standards for the sales and marketing of these supplementary health insurance products. This was crucial because prior to OBRA, there were instances where consumers were misled about the benefits, costs, and terms of Medigap plans. By addressing marketing practices, OBRA ensures that individuals receive clear and accurate information when making decisions about their healthcare coverage, which ultimately fosters a more transparent and fair marketplace for Medicare beneficiaries.

One of the key goals of the Omnibus Budget Reconciliation Act (OBRA) regarding Medigap is to eliminate questionable marketing practices. This legislation was aimed at protecting consumers who are purchasing Medigap policies by establishing standards for the sales and marketing of these supplementary health insurance products. This was crucial because prior to OBRA, there were instances where consumers were misled about the benefits, costs, and terms of Medigap plans. By addressing marketing practices, OBRA ensures that individuals receive clear and accurate information when making decisions about their healthcare coverage, which ultimately fosters a more transparent and fair marketplace for Medicare beneficiaries.