Coventry Strengthens Consumer Protection Safeguards in PFFS Offerings

BETHESDA, Md.--(BUSINESS WIRE)--Coventry Health Care, Inc. (NYSE:CVH) today announced that it has agreed to participate with six other leading Medicare Advantage health plans to temporarily suspend marketing of individual Medicare Private Fee-for-Service (PFFS) Plans to facilitate the immediate implementation of additional safeguards to protect Medicare beneficiaries.

Coventry is working cooperatively with the Centers for Medicaid & Medicare Services (CMS) to expedite the early implementation of the new CMS 2008 marketing guidelines. The company is not under investigation or the subject of any corrective action plans or sanctions.

These actions are part of ongoing efforts to strengthen marketing practices with independent brokers and agents. The company has a 10-year record in delivering excellent service to thousands of Medicare recipients across the country. Coventry’s zero tolerance policy for inappropriate marketing practices by brokers and agents continues to be employed in this temporary period.

Existing members of Coventry’s PFFS program are not affected by this announcement. Coventry Health Care currently participates with CMS to offer Medicare HMO, PPO, PFFS and Part D programs.

Coventry Health Care (www.cvty.com) is a diversified national managed healthcare company based in Bethesda, Maryland, operating health plans, insurance companies, network rental and workers’ compensation services companies. Through its Commercial Business, Individual Consumer & Government Business, and Specialty Business Divisions, Coventry provides a full range of risk and fee-based managed care products and services to a broad cross section of individuals, employer and government-funded groups, government agencies, and other insurance carriers and administrators.