NAIC Questions Federal Consumer Notice Draft

But "value can be measured in many ways, not just in the monetary value of benefits," the regulators write.

In some cases, sticking with a private Medigap insurer that has provided good service in the past might be one type of value, the regulators argue.

"The insured stays with a company he or she knows and trusts, one that provides reliable customer service, and one that has proven staying power in the marketplace," the regulators write in the letter, adding that there is "no promise" that a drug benefit available Jan. 1, 2006, will still be available 2 years later.

The regulators also take issue with language suggesting that the drug benefit in a Medigap plan is not equal to the new Medicare drug benefit and language that may give seniors the impression that they may enroll in the Medicare drug plan and still maintain a Medigap policy.

Of additional concern, the regulators write, is a claim in the disclosure statement that the longer an individual waits before enrolling in the Medicare plan, the higher the premiums will be. "While factually accurate, the NAIC finds this language troubling because the context within which it is placed suggests to the beficiary that enrollment in Part D is required, and that further delay portends dire financial penalties for having done so," the regulators argue in their letter. "This is precisely the type of 'push' advertising technique that the NAIC and its members consistently oppose and prohibit at the state regulatory level."