Bulletin Number 2025-10 All Insurers and Producers Licensed to Transact Health Insurance Plans within the State of South Carolina

TO: South Carolina Department of Insurance Capitol Center 1201 Main Street, Suite 1000 Columbia, South Carolina 29201 M ailing Address: P.O. Box 100105, Columbia, S.C. 29202-3105 Telephone: (803) 737-6160 BULLETIN NUMBER 2025-10 HENRY MCMASTER Governor MICHAEL WISE Director All Insurers and Producers Licensed to Transact Health Insurance Plans within the State of South Carolina including Medicare, Medicare Advantage and Medicare Supplement Plans (Medicare Plans) FROM: Michael Wise~ v~ Director SUBJECT: DATE: I. Unfair Trade Practices Related to the Marketing of Medicare, Medicare Advantage, and Medicare Supplement Enrollment Practices November 24, 2025 PURPOSE It has come to the Department's attention that some health insurers have attempted to restrict access to health plans by either I) removing the application from their website, 2) encouraging producers to avoid selling Medicare plans or 3) changing or discontinuing producer compensation during the plan year. These reported actions involve Medicare and Medicare supplement insurance products. Such actions, if used to restrict consumer access or to manipulate marketing behavior to the disadvantage of South Carolina consumers, constitute unfair trade practices or deceptive acts under South Carolina law. Section 38-57-30 prohibits such market practices. II. DISCUSSIO Primary regulatory authority for Medicare supplement policies falls within the jurisdiction of the states. Accordingly, Medicare plans remain subject to the general prohibitions under South Carolina law against unfair or deceptive acts. Under South Carolina law, it is an unfair trade practice to restrict consumer access to an insurance product that was filed and approved by this Department for sale in this state. This Department will investigate as an unfair trade practice any action by an insurer to: • Withhold, restrict or obscure access to enrollment materials for any Medicare Plan that is approved for sale in the State of South Carolina; • Reduce or eliminate producer compensation for an approved product mid-term unless it is expressly permitted in its approved filing; and/or • Create barriers or other artificial disincentives that deter producers from marketing otherwise lawful and available products or that mislead consumers regarding the products available to them in this market. Such actions undermine the market's stability and negatively impact South Carolina consumers. Insurers may withdraw products from the market in accordance with applicable South Carolina and federal law but may not engage in the practices referenced above. If a plan has not been withdrawn and remains approved and offered in South Carolina, the insurer must make enrollment reasonably available through customary channels, online, by mail, and through duly appointed producers. Insurers must honor the compensation structure reflected in their approved filings. Insurance products filed and approved for sale must be accessible and marketed without artificial barriers or disincentives. Insurers that include a percentage for commission in their rate filing cannot cut producer commissions to zero to discourage the producer from selling or enrolling individuals in the Medicare Plan. The Department plans to monitor compliance and will take enforcement action where warranted. Violations of the law are subject to the penalties set forth in S.C. Code Ann. § 38-2-10. III. QUESTIONS Questions regarding this bulletin should be submitted via email to LAHmail@doi.sc.gov.