Obama Administration Drops 'Gag Order' on Private Health Insurer

U.S. health officials announced Friday that private insurers can send seniors information on health-related issues as long as they allow their members to opt out of receiving the communications, effectively ending its probe of Humana.

The federal government, in the face of allegations it was trampling on free speech, has closed its investigation of a major insurance company for allegedly trying to scare seniors with a mailer warning they could lose important benefits under President Obama's health reform plan.

U.S. health officials announced Friday that private insurers can send seniors information on health-related issues as long as they allow their members to opt out of receiving the communications, apparently ending its probe of Humana.

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Republicans, who had slammed Obama officials for launching the probe, welcomed the news but still expressed concerns.

"I am relieved that the administration is no longer misusing its regulatory authority to prohibit plans from communicating to seniors factual information about the Medicare cuts in health care reform," Rep. Dave Camp, the senior Republican on the House Ways and Means Committee, said in a written statement.

"However, I remain concerned that CMS overstepped in issuing its gag order as a result of undue political pressure to penalize anyone who dare speak out against the Democrats' health care bill," he said. "We still need to get the answers to how and why this gag order was issued."

The Health and Human Services Department launched its investigation of Humana after the Louisville-based company mailed a letter to patients enrolled in its Medicare Advantage plans -- private options that replace standard Medicare -- warning that Obama's health overhaul slash essential benefits of the program.