In prior blog posts, I provided a general overview of state regulation of insurance product advertising as well as further details applicable to advertising life insurance and annuity products. With those as background, this blog digs further into the advertising of insurance products and considers the regulatory requirements for advertising of Medicare Supplement Insurance, commonly known as MedSupp or Medigap.
Individuals attaining age 65 are generally eligible for health insurance coverage through Medicare, administered through the U.S. Department of Health and Human Services, Centers for Medicare & Medicaid Services (CMS). Individuals can elect Medicare (sometimes referred to as Original Medicare or Traditional Medicare), or they can opt out and obtain Medicare Advantage. We are only addressing Medicare supplemental coverage with this blog.
Medicare covers a wide range of health care costs, but there are deductibles and co-pays that are the responsibility of the individual. To assist with payment of the items not fully covered by Medicare, individuals can purchase Medicare Supplement Insurance, Medigap/MedSupp, from a licensed life insurance company.
Advertising regulations
The advertising regulations for MedSupp policies are covered by state laws; the structure of the policies, including the benefits provided, is governed by CMS. There are a set number of policy form types available; for example, an individual purchasing a policy Plan F from Company ABC gets the same coverage as if they had purchased a Plan F from Company XYZ. The distinction between plans is on such things as price and availability (including underwriting standards).
As with other areas of state regulation of insurance, the National Association of Insurance Commissioners (NAIC) has published models for MedSupp. As described in prior blog posts, the NAIC creates and publishes Model regulations on common insurance issues to assist state regulators and encourage more state-by-state uniformity. Regarding MedSupp, the Models are Model Regulation To Implement The NAIC Medicare Supplement Insurance Minimum Standards (MDL 651) and Model Rules Governing Advertisements of Medicare Supplement Insurance With Interpretive Guidelines (MDL 660)
MDL 651 provides details on a wide range of insurance issues relating to MedSupp, including actuarial standards. It is adopted in most states, while non-adopting states have similar regulations. There is not much detail regarding advertising in this Model. Of key importance, the Model prohibits:
Any method of marketing having the effect of or tending to induce the purchase of insurance through force, fright, threat, whether explicit or implied, or undue pressure to purchase or recommend the purchase of insurance.
MDL 660 contains detailed requirements for advertising, including required disclosures as well as prohibited terminology. One key element of these regulations is that a statement can be true but still prohibited if it has the potential to confuse or mislead a consumer. The regulations are drafted with an awareness that many, if not most, of the consumers reviewing the advertising are age 65 or older. Since many states have “senior protection” rules concerning advertising of any financial products to older consumers, extra care is needed for MedSupp advertising so as not to run afoul of the insurance-specific regulations as well as the general senior protection limitations.
NAIC requirements unique to MedSupp advertisements
Key advertising requirements unique to MedSupp include:
In reviewing the regulations, with the other specific “musts”, it is apparent that advertising MedSupp policies requires a high level of detail. Not only must the advertisements be truthful and not misleading as a general matter, they must also be reviewed for specific trigger words.
It is useful to note that advertising to seniors is currently undergoing a re-evaluation. It was announced earlier in 2025 that the NAIC Senior Issues Task Force is reviewing the existing Models and considering revisions. Specifically, the Task Force is charged with the following:
Develop appropriate regulatory standards and revisions, as necessary, to the NAIC models, consumer guides, and training material on Medicare supplement insurance, senior counseling programs, and other insurance issues that affect older Americans. Work with federal agencies to advance appropriate regulatory standards for Medicare supplement and other forms of health insurance applicable to older Americans. Review the Medicare Supplement Insurance Minimum Standards Model Act (#650) and the Model Regulation to Implement the NAIC Medicare Supplement Insurance Minimum Standards Model Act (#651) to determine if amendments are required based on changes to federal law. Work with the federal Centers for Medicare & Medicaid Services (CMS) to revise the annual joint publication, Choosing a Medigap Policy: A Guide to Health Insurance for People with Medicare.
Beyond State Regulations
Concern over advertisements for MedSupp is not limited to state insurance regulators. Organizations with a mission of protecting seniors are providing guidance to seniors, their families, and concerned persons. One key item of advice by these groups relates to warnings about advertising relating to Medicare and MedSupp. These groups have an advocacy function, and a company could be negatively impacted were they to be reported as engaging in inappropriate advertising.
While advertising review for MedSupp has been successfully done by compliance reviewers since the products became available, the focus on protection for seniors is a somewhat new addition to the challenge. An experienced reviewer with manual checklists can successfully perform this review. However, when the regulations change, these checklists need to be updated, and the reviewers need to be educated on the modified provisions.
In closing
Advertising regulations for insurance (Unfair Trade Practices Act) + advertising regulations for life insurance products + advertising regulations for MedSupp + senior protection concerns all add up to a high level of specific advertising requirements and restrictions. There are objective requirements as well as subjective decisions to be made by compliance professional reviewers. The future of advertising review for MedSupp products is ripe for change, including the use of AI to help increase speed and consistency when complying with requirements.
The opinions provided are those of the author and not necessarily those of Saifr or its affiliates. This information is general and educational in nature, is for informational purposes only, and should not be construed as legal advice. Saifr and any other third parties are independent entities and not affiliated. Mentioning them does not suggest a recommendation or endorsement by Saifr.
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