Calling it “wholly unacceptable,” Sen. Max Baucus is lashing out against health insurer Humana for mailings to its senior citizen customers the congressman says are misleading.

The Centers for Medicare and Medicaid Services, at Baucus’ urging, sent a letter to the Louisville, Ky.-based national health insurer ordering it to stop sending out a letter regarding current efforts in Washington, D.C., to reform health care.

According to the CMS letter, the Humana mailings come in an envelope that indicate it contains “important information about your Medicare Advantage plan – open today,” and say the proposed legislation affecting Medicare could hurt “millions of seniors and disabled individuals [who] could lose many of the important benefits and services that make Medicare Advantage health plans so valuable.”

Teresa DeCaro, acting director for CMS’ Medicare Drug and Health Plan Contract Administration Group, said the federal agency is concerned that the information is “misleading and confusing” to beneficiaries” and ordered Humana to stop sending them to customers as it continues its investigation.

A spokesman for Humana told IFAwebnews.com the insurer “is cooperating with CMS on resolving this matter.”

Max Baucus

In a statement, Baucus, a Montana Democrat and chairman of the U.S. Senate Finance Committee, condemned the letter as an example of insurance industry scare tactics, stressing that health reform legislation will include significant improvements to the Medicare program that will benefit seniors.

Baucus released his America’s Health Future Act last week, outlining a series of reforms to the industry. The committee is slated to debate the bill this week.

“It is wholly unacceptable for insurance companies to mislead seniors regarding any subject – particularly on a subject as important to them, and to the nation, as health care reform,” said Baucus. “The health care reform bill we released last week strengthens Medicare and does not cut benefits covered under the Medicare program – and seniors need to know that. From lower prescription drug costs to free preventive care to better treatment for chronic conditions, seniors have so much to gain from health reform and I’m not going to let insurance company profits stand in the way of improving Medicare for seniors. ”

Baucus said false claims in the Humana letter include the threat of seniors losing benefits through Medicare Advantage. The senator said his bill does not include cuts to such benefits and would instead improve the value of the program by reforming payments so they appropriately reimburse insurers for their costs and promote plans offering high quality, efficient health care for seniors.

While Humana comes under fire from Baucus, two other insures were also recently accused of illegally lobbying against health reform.

Consumer Watchdog alleges that workers for WellPoint and UnitedHealthcare violated California labor laws by having its employees use business hours to write and call members of Congress to oppose reform efforts.