Is it permissible to target neighborhoods based on housing type or assumed income to decide who to market MA plans to?

• A. Yes, it's a smart business strategy
• B. No, it could be discriminatory and a prohibited practice
• C. Only if the marketing is paid for by the plan
• D. Only for certain plans

Answer: (B)

Marketing Medicare Advantage plans requires treating all eligible individuals in the service area fairly and providing information without bias. Targeting neighborhoods based on housing type or assumed income amounts to socioeconomic profiling and would effectively exclude people from receiving plan information or options. That kind of approach can lead to discrimination and goes against CMS marketing rules, which are designed to ensure equal access to plan information and choices. There are legitimate exceptions for plans that serve specific eligible populations (like certain Special Needs Plans), but even those must follow strict eligibility and disclosure requirements and cannot be used to broadly steer marketing by income or housing status. So, it’s not permissible to use housing type or inferred income to decide who to market MA plans to.