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STIPULATIONS
New Stipulations from the Centers for Medicare & Medicaid Services
The CMS issued heightened marketing rules that align with the FCC’s Second Report and Order requiring “one to one” prior express written consent to transfer personal data to marketing partners and will be in effect as of October 1, 2024.
It specifically prohibits personal beneficiary data collected by Third Party Marketing Organizations (TPMOs), for marketing or enrolling a person into a Medicare Advantage or Part D plan, from being shared with another TPMO unless prior express written consent is given by the Medicare enrollee.
CMS
Why is this Change in Consent Collection Needed?
The CMS emphasizes that TPMOs are selling and reselling beneficiary contact information to “skirt existing CMS rules that prohibit cold calling so they can aggressively market plans to beneficiaries. Beneficiaries are unaware that by placing a call or clicking on a generic-looking web-link they are unwittingly agreeing and providing consent for their personal contact information to be collected and sold to other entities for future marketing activities.”
As a result, CMS is implementing a “one-to-one consent structure where TPMOs must obtain prior express written consent through a clear and conspicuous disclosure for each TPMO that will be receiving the beneficiary’s data.”
The CMS also now requires TPMOs to obtain prior express written consent even when the caller is calling manually, not using an ATDS.
