Health insurance provider Universal American Corp. (UAM) Monday stated that it has been notified by the Centers for Medicare and Medicaid Services or CMS on November 19 regarding the imposition of intermediate sanctions, suspending the marketing to and the enrollment of new members in its Medicare Advantage plans, effective December 5.
According to CMS, the suspension relates mainly to agent oversight and market conduct issues.
Universal American said that the CMS action does not affect the current members in its Medicare Advantage plans. It also does not affect the marketing, enrollment or membership in the company's stand-alone Medicare Prescription Drug plans.
"Compliance is integral to Universal American's culture and operations and we are working diligently to resolve these issues with CMS as quickly as possible. We are committed to continually improving our systems, processes and procedures for the benefit of our members and healthcare providers," said Richard Barasch, chairman and chief executive officer of Universal American.
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