Central ND News

The North Dakota Insurance Department has issued a warning to health insurance companies and licensed producers about unfair sales practices in the Medicare market that could affect seniors’ access to coverage. The department released a bulletin outlining concerns over actions that may restrict consumer access or manipulate compensation structures, targeting insurers and producers offering Medicare Advantage, Medicare Supplement, Cost Plans, and Prescription Drug Plans in the state.

The department cited examples from other states where insurance companies have removed enrollment applications from their websites, discouraged producers from selling certain plans, or changed producer compensation mid-year. According to the department, such tactics are considered unfair trade practices under North Dakota law.

“North Dakota’s seniors deserve clear, honest, and accessible information when choosing Medicare coverage,” said Insurance Commissioner Jon Godfread. “When insurers manipulate the marketplace or penalize producers for helping consumers make the best choice, it undermines both competition and trust. We expect all companies and agents operating in North Dakota to follow the law and act in good faith.”

The bulletin clarifies that both insurance producers and companies are subject to state unfair trade practice statutes. It is illegal to enroll consumers in products solely for higher compensation. Licensed producers must ensure that recommended products meet consumers’ needs based on prescription drug coverage, provider networks, cost, and affordability.

To support fair competition and protect consumers, the department directed insurers and producers to make enrollment applications available in print and online; avoid discouraging enrollment for compensation reasons; not change commissions mid-year; and provide compensation only as approved by the department.

“Fair markets depend on fair play,” Godfread said. “Artificially limiting options or changing compensation after filings have been approved harms consumers and the professionals who serve them. North Dakota will not tolerate these tactics.”

This action comes after similar warnings from organizations such as the National Association of Insurance and Financial Advisors (NAIFA) and other state regulators like Idaho’s Department of Insurance. Federal regulations already limit which insurers can offer certain types of Medicare plans—such as Cost Plans—based on minimum enrollment numbers set by CMS. In many rural counties in North Dakota, only a few insurers offer these plans, so any additional restrictions could further reduce choices for seniors.

The Insurance Department stated it will monitor compliance with these rules closely and take enforcement action against any company or producer found violating them. Seniors who believe they have experienced misleading or restrictive sales practices related to Medicare can contact NDSHIP at (888) 575-6611 or visit insurance.nd.gov.