Health Insurance Marketing Transparency and Government Affiliation Disclosure Act

Summary

This bill amends Chapter 5 (§ 38.2-500 et seq.) of Title 38.2 of the Code of Virginia to require conspicuous, standardized disclosures in all advertisements, solicitations, or sales communications that reference Medicare or Medicaid. The purpose is to prevent consumer confusion and prohibit misleading representations of governmental affiliation in the marketing of health insurance products.

Legislative Findings

The General Assembly finds that:

• Consumers are frequently exposed to advertisements and solicitations referencing Medicare and Medicaid in a manner that may imply government endorsement or affiliation.
• Such representations may constitute misleading or deceptive practices within the meaning of Chapter 5 (§ 38.2-500 et seq.) of Title 38.2.
• Clear, conspicuous, and standardized disclosures are necessary to ensure transparency and protect consumers from confusion regarding the source and nature of such communications.

Proposed Code Section

§ 38.2-5XX. Required disclosures for advertisements referencing Medicare or Medicaid.

A. Any person, insurer, agency, or entity engaged in the solicitation, negotiation, or sale of insurance or health-related products in the Commonwealth that references "Medicare" or "Medicaid" in any advertisement, marketing material, or sales communication shall include a disclosure that complies with the requirements of this section.

B. The disclosure shall:

1. Be clearly and conspicuously displayed;
2. Appear in a font size no smaller than 16-point type;
3. Be enclosed within a border or box;
4. Use a color that contrasts with the background to ensure readability;
5. Be positioned in a manner that is immediately noticeable to a reasonable consumer.

C. The disclosure shall contain the following statement, or substantially similar language as prescribed by the Commission:

"This is a solicitation for insurance. We are not affiliated with, endorsed by, or acting on behalf of any federal or state government agency, including Medicare or Medicaid."

D. The Commission shall have authority to:

1. Adopt regulations to standardize the format, placement, and wording of disclosures required by this section;
2. Define additional requirements necessary to prevent misleading or deceptive practices;
3. Enforce compliance pursuant to the provisions of Chapter 5 (§ 38.2-500 et seq.).

E. A violation of this section shall constitute an unfair or deceptive act or practice in the business of insurance under § 38.2-500 and shall be subject to all applicable penalties and enforcement mechanisms.

Implementation

The provisions of this act shall become effective on July 1, 2027. The State Corporation Commission shall promulgate any necessary regulations prior to the effective date.

Notes

• This section is intended to be codified within Chapter 5 of Title 38.2, governing unfair trade practices in the business of insurance.
• The bill establishes a uniform disclosure standard similar in structure to other consumer protection notice requirements within the Code of Virginia.