Conducting a drawing or gift, when allowed under your state’s laws, is one way to attract attendees to a Medicare marketing event. When promoting your prize drawing in marketing material, make sure you include the proper written statement to avoid any confusion and to comply with Centers for Medicare and Medicaid Services regulations.
Can Brokers Promote a Prize Drawing in Medicare Marketing Material?
Yes. According to CMS (MMG, Appendix 2, No. 8), you can promote your drawing, prize, or promise of a gift as long as you include a written statement that says there is no obligation to enroll in the plan.
What Are Examples of the Drawings and Prize Statements?
- Eligible for a free drawing and prizes with no obligation
- Free drawing without obligation
Does the Statement Need to be Used Verbatim?
No, as long as the statement is clear that there is no obligation to enroll.
Is There a Limit to the Value of the Drawing or Prize?
Yes. According to CMS rules (MMG, Section 40.4), the value can’t be worth more than $15 per person. For example, if 10 people are expected to attend an event, the prize may not be worth more than $150 ($15 for each of the 10 anticipated attendees).
Can the Drawing or Gift be in Cash?
No. You can’t give away cash or other monetary rebates, even if they are worth $15 or less.
What About Other CMS Rules for Gifts?
Where Can I Get More Medicare Marketing Guidance?
Our resource center is available 24/7 to give you the help you need with Medicare guidelines, sales advice and more to keep your business on track. To learn more about the Excelsior team and how we can help you, contact us.