Which entity regulates the sale of Medicare Supplements?

• A. State insurance departments
• B. Centers for Medicare & Medicaid Services
• C. Federal Trade Commission
• D. Department of Labor

Answer: (A)

Medicare Supplements are private health insurance products, so their sale is governed primarily by state laws and overseen by state insurance departments. These departments license producers, review policy forms for compliance, regulate advertising, and enforce consumer protections, ensuring that how Medicare Supplement plans are marketed and sold meets each state’s rules. While the Centers for Medicare & Medicaid Services oversees the Medicare program at the federal level and provides federal guidelines for Medigap plan design, the actual regulation of selling and marketing these plans is carried out by the states. The Federal Trade Commission handles general consumer protection in advertising, but isn’t the regulator for insurance sales. The Department of Labor governs employer-sponsored plans under ERISA, not individual Medicare Supplement sales.