SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Accountability and 
Transparency in Medicare Marketing Act of 2007’’. 
SEC. 
2. 
STANDARDIZED 
MARKETING 
REQUIREMENTS 
UNDER THE MEDICARE ADVANTAGE AND 
MEDICARE PRESCRIPTION DRUG PROGRAMS. 
(a) MEDICARE ADVANTAGE PROGRAM.— 
(1) IN GENERAL.—Section 1856 of the Social 
Security Act (42 U.S.C. 1395w–26) is amended— 
(A) in subsection (b)(1), by inserting ‘‘or 
subsection (c)’’ after ‘‘subsection (a)’’; and 
(B) by adding at the end the following new 
subsection: 
‘‘(c) STANDARDIZED MARKETING REQUIREMENTS.— 
‘‘(1) DEVELOPMENT BY THE NAIC.— 
‘‘(A) 
REQUIREMENTS.—The 
Secretary 
shall request the National Association of Insur-
ance Commissioners (in this subsection referred 
to as the ‘NAIC’) to— 
‘‘(i) develop standardized marketing 
requirements for Medicare Advantage or-
ganizations with respect to Medicare Ad-
vantage plans and PDP sponsors with re-
spect to prescription drug plans under part 
D; and 
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‘‘(ii) submit a report containing such 
requirements to the Secretary by not later 
than the date that is 9 months after the 
date of enactment of this subsection. 
‘‘(B) PROHIBITED ACTIVITIES.—Such re-
quirements shall prohibit the following: 
‘‘(i) Cross-selling of non-Medicare 
products or services with products or serv-
ices offered by a Medicare Advantage plan 
or a prescription drug plan under part D. 
‘‘(ii) Up-selling from prescription drug 
plans under part D to Medicare Advantage 
plans. 
‘‘(iii) Telemarketing (including cold 
calling) conducted by an organization with 
respect to a Medicare Advantage plan or a 
PDP sponsor with respect to a prescription 
drug plan under part D (or by an agent of 
such an organization or sponsor). 
‘‘(iv) A Medicare Advantage organiza-
tion or a PDP sponsor providing cash or 
other monetary rebates as an inducement 
for enrollment or otherwise. 
‘‘(C) ELECTION
FORM.—Such require-
ments may prohibit a Medicare Advantage or-
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ganization or a PDP sponsor (or an agent of 
such an organization or sponsor) from com-
pleting any portion of any election form used to 
carry out elections under section 1851 or 
1860D–1 on behalf of any individual. 
‘‘(D) 
AGENT
AND
BROKER
COMMIS-
SIONS.—Such 
requirements 
shall 
establish 
standards— 
‘‘(i) for fair and appropriate commis-
sions for agents and brokers of Medicare 
Advantage organizations and PDP spon-
sors, including a prohibition on extra bo-
nuses or incentives; and 
‘‘(ii) for the disclosure of such com-
missions. 
‘‘(E) CERTAIN
CONDUCT
OF
AGENTS.— 
Such requirements shall address the conduct of 
agents engaged in on-site promotion at a facil-
ity of an organization with which the Medicare 
Advantage organization or PDP sponsor has a 
co-branding relationship. 
‘‘(F) OTHER STANDARDS.—Such require-
ments may establish such other standards relat-
ing to marketing under Medicare Advantage 
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plans and prescription drug plans under part D 
as the NAIC determines appropriate. 
‘‘(2) IMPLEMENTATION OF REQUIREMENTS.— 
‘‘(A) ADOPTION OF NAIC DEVELOPED RE-
QUIREMENTS.—If the NAIC develops standard-
ized marketing requirements and submits the 
report pursuant to paragraph (1), the Secretary 
shall promulgate regulations for the adoption of 
such requirements. The Secretary shall ensure 
that such regulations take effect not later than 
the date that is 10 months after the date of en-
actment of this subsection. 
‘‘(B) REQUIREMENTS IF NAIC DOES NOT 
SUBMIT REPORT.—If the NAIC does not de-
velop standardized marketing requirements and 
submit the report pursuant to paragraph (1), 
the Secretary shall promulgate regulations for 
standardized marketing requirements for Medi-
care Advantage organizations with respect to 
Medicare Advantage plans and PDP sponsors 
with respect to prescription drug plans under 
part D. Such regulations shall prohibit the con-
duct described in paragraph (1)(B), may pro-
hibit the conduct described in paragraph (1)(C), 
shall establish the standards described in para-
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graph (1)(D), shall address the conduct de-
scribed in paragraph (1)(E), and may establish 
such other standards relating to marketing 
under Medicare Advantage plans and prescrip-
tion drug plans as the Secretary determines ap-
propriate. The Secretary shall ensure that such 
regulations take effect not later than the date 
that is 10 months after the date of enactment 
of this subsection. 
‘‘(C) CONSULTATION.—In establishing re-
quirements under this subsection, the NAIC or 
Secretary (as the case may be) shall consult 
with a working group composed of representa-
tives of Medicare Advantage organizations and 
PDP sponsors, consumer groups, and other 
qualified individuals. Such representatives shall 
be selected in a manner so as to insure bal-
anced representation among the interested 
groups. 
‘‘(3) STATE
REPORTING
OF
VIOLATIONS
OF 
STANDARDIZED
MARKETING
REQUIREMENTS.—The 
Secretary shall request that States report any viola-
tions of the standardized marketing requirements 
under the regulations under subparagraph (A) or 
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(B) of paragraph (2) to national and regional offices 
of the Centers for Medicare & Medicaid Services. 
‘‘(4) REPORT.—The Secretary shall submit an 
annual report to Congress on the enforcement of the 
standardized marketing requirements under the reg-
ulations under subparagraph (A) or (B) of para-
graph (2), together with such recommendations as 
the Secretary determines appropriate. Such report 
shall include— 
‘‘(A) a list of any alleged violations of such 
requirements reported to the Secretary by a 
State, a Medicare Advantage organization, or a 
PDP sponsor; and 
‘‘(B) the disposition of such reported viola-
tions.’’. 
(2) STATE
AUTHORITY
TO
ENFORCE
STAND-
ARDIZED MARKETING REQUIREMENTS.— 
(A) IN GENERAL.—Section 1856(b)(3) of 
the Social Security Act (42 U.S.C. 1395w– 
26(b)(3)) is amended— 
(i) by striking ‘‘or State’’ and insert-
ing ‘‘, State’’; and 
(ii) by inserting ‘‘, or State laws or 
regulations enacting the standardized mar-
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