Bill Seeks Limits To Healthcare Ads

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Plan Would Restrict HMO’s Ad Spending to 10 Percent of Revenue
BOSTON–A legislative proposal to limit the amount of money health maintenance organizations in Massachusetts allot to advertising has many agencies and clients up in arms.
The bill would limit an HMO’s total administrative costs, including advertising and marketing expenditures, to 10 percent of the company’s total revenue. The rest of its profits would go directly to healthcare.
Not surprisingly, many agency executives scoffed at the proposal, claiming it restricts the freedom of HMOs to promote themselves and strikes a blow to startup entities that need to get their name out to consumers during their first few months.
“It’s ridiculous,” said Emily Haggman, senior vice president of Haggman in Manchester, Mass.,






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