Deregulation is a key strategy of the Trump Administration. In fact, an executive order signed on January 31, 2025 directed federal agencies to repeal ten regulations per every new regulation that is issued. This push to deregulate was evident in certain Medicare Advantage (MA) marketing rules finalized in Centers for Medicare and Medicaid’s (CMS) Contract Year (CY) 2027 MA and Part D final rule where CMS reversed several Biden-era rules aimed at regulating the marketing of MA plans.
Background
Medicare beneficiaries have long reported that they receive an overabundance of advertising from MA plans and third-party marketing organizations (TPMOs). There has been clear evidence that misleading marketing materials and certain TPMO marketing and sales strategies have resulted in increased confusion and, for some, enrollment in MA plans without the beneficiaries’ knowledge.
The Biden Administration sought to address problems with MA marketing through the CY 2023–2025 MA and Part D rules. These rules were aimed at curbing misleading marketing, improving oversight of agents/brokers and TPMOs, and reducing financial incentives that could steer beneficiaries into plans. CY 2023-2025 MA and Part D final rule actions to regulate the marketing of MA plans under the Biden Administration included the following:
- Require TPMO disclosures: Marketing entities must clearly disclose that they do not offer every available plan in the beneficiary’s area and must identify the insurers they represent.
- Disclose plan sponsors in ads: If a TPMO advertises plan benefits, it must identify the MA organizations offering those plans with the same prominence as the benefits themselves.
- Oversight obligations: MA plans must maintain compliance programs to monitor agents and brokers and report non-compliance to CMS.
- Prohibit misleading marketing language or imagery, including claims that cannot be substantiated (e.g. unsupported superlatives like “best”).
- Restrict use of the Medicare name, logo, or card in advertisements unless approved and used in a non-misleading way.
- Prohibit marketing of benefits not available in a beneficiary’s service area or exaggerated savings claims based on unrealistic comparisons.
- Broaden CMS review of advertisements by expanding the definition of “marketing” so more ads must be submitted to CMS for approval before use.
As a result of these rules, in 2024, CMS reported that since 2023, the agency has issued denials for over 1,500 TV ad submissions that were non-compliant and misleading to consumers. As discussed in the CY 2027 MA and Part D final rule, many of these new Biden-era MA marketing requirements were characterized by the MA industry as creating unnecessary delays, administrative burden, and paperwork without providing meaningful beneficiary protection. However, some research has also shown that many smaller MA plans support these marketing reforms. This is because marketing deregulation tends to favor large, national insurers with the financial resources to dominate the marketing sector.
President Trump’s Executive Order Directs Federal Agencies to Repeal Ten Existing Regulations for Every New Regulation
On January 31, 2025, less than 2 weeks after taking office, President Trump signed Executive Order (EO) 14192, “Unleashing Prosperity Through Deregulation,”. This EO established one of the most ambitious deregulatory initiatives in recent federal policy. The order directs federal agencies to repeal at least ten existing regulations for every new regulation issued, unless prohibited by law. It also requires that the total incremental cost of new regulations to fall “significantly less than zero” in fiscal year 2025, effectively mandating a net reduction in regulatory costs across the federal government.
The order frames regulatory reduction as a core economic priority. According to the policy statement accompanying the order, the Administration argues that federal regulations impose “massive costs” that restrain innovation, limit economic growth, and create compliance burdens for businesses and individuals. The Office of Management and Budget (OMB) was tasked with implementing the initiative through a regulatory budgeting framework, requiring agencies to track regulatory costs and offset new rules by eliminating existing ones.
CMS Reverses MA Marketing Protections
On April 6, 2026, CMS released the CY 2027 MA and Part D final rule, a sweeping annual regulatory package that touches nearly every aspect of the programs—from quality ratings and enrollment rules to marketing practices. While much of the policy discussion has focused on the technical details of those changes, the rule is best understood in the broader political context of the Trump Administration’s regulatory philosophy.
In particular, several of the marketing-related proposals appear to be part of the wider deregulatory effort tied to EO 14192. Importantly, when these rules were first proposed, CMS explicitly tied them to the broader deregulatory mandate of EO14192—noting that several provisions are intended to “reduce burden and remove requirements that are duplicative or no longer necessary.”
The CY 2027 MA and Part D final rule reflects the deregulatory philosophy described in the EO by reversing several marketing and communications rules implemented during the Biden Administration. New CY 2027 changes that reduce regulation of MA marketing:
- The new 2027 final rule eliminates certain restrictions governing the timing and structure of marketing events. Under previous requirements, MA plans were required to separate educational events from marketing events and follow strict rules about when marketing discussions could occur. The new 2027 final rule allows marketing activities to occur immediately after educational events and in the same location, provided beneficiaries receive appropriate notice.
- The new 2027 final rule removes the 48-hour waiting period between a beneficiary signing a scope-of-appointment form and meeting with an agent, allowing agents and brokers to discuss plan options more quickly after a beneficiary expresses interest.
- Another change involves the use of superlatives in marketing materials. Previous CMS rules restricted terms such as “best” or “top-rated” unless plans could substantiate those claims. The rule removes those restrictions, arguing that broader prohibitions against misleading information already provide sufficient oversight.
- In addition, the rule would reduce the required retention period for recorded marketing calls from ten years to six years, lowering compliance costs for plans and TPMOs.
In addition to marketing changes, the rule includes other deregulatory actions, such as:
- Eliminating certain health equity reporting requirements
- Rescinding the requirement that MA plans send mid-year notices about unused supplemental benefits
- Issuing a Request for Information (RFI) seeking ideas for additional regulatory streamlining in Medicare, further signaling the Administration’s intention to pursue broader regulatory reduction in the program.
Taken together, these changes would significantly reduce the administrative requirements governing Medicare Advantage marketing practices.
The Policy Debate
Proponents and opponents of the final rule’s new measures debate a fundamental question: are existing consumer protection laws and CMS oversight mechanisms sufficient to protect beneficiaries without the more detailed marketing rules established by the Biden Administration?
The CY 2027 MA and Part D final rule illustrates how regulatory policy in Medicare Advantage is increasingly shaped by broader political and administrative priorities. EO14192 created a government-wide directive to reduce regulatory burdens and eliminate existing rules as a condition of issuing new ones. In the Medicare Advantage program, that mandate appears to be translating into a reconsideration of several oversight mechanisms adopted in recent years—including those governing plan marketing and agent/broker conduct. Whether these changes will ultimately improve the Medicare Advantage market – or create new challenges for beneficiaries – will depend on how CMS balances regulatory simplification with the need for strong consumer protections.