Miss. insurance commissioner threatens to revoke more than 70 licenses in Medicare probe

Mississippi Insurance Commissioner Mike Chaney notified more than 70 insurance producers this week that their resident producer licenses could be revoked for allegedly obtaining or maintaining licenses through material misrepresentation or false pretenses, the Mississippi Insurance Department said.

The department said the producers handle Medicare Advantage plans and have been invited to a hearing set for July 20 to offer documentary evidence challenging the allegations. Chaney wrote in the letters that applicants certified under penalty of perjury that their application information was true and warned that misrepresentation could lead to denial, revocation or other regulatory enforcement.

If the hearing officer rules against the producers, the department said it could place companies on probation, suspend, revoke or refuse to issue or renew licenses. The commissioner may also levy civil penalties of up to $1,000 per violation, the department said. Producers may instead choose to voluntarily surrender their licenses.

Chaney told the Magnolia Tribune that his office has been quietly investigating the matter for about a year and that prosecutors could seek restitution. Chaney said the investigation, which has involved cooperation from at least one carrier and the Centers for Medicare & Medicaid Services, shows potential losses in the “hundreds of millions of dollars” when combined with actions in other states.

The department’s action comes as the Trump administration and a White House task force led by Vice President J.D. Vance have stepped up efforts to curb waste, fraud and abuse in federal health programs. The Centers for Medicare & Medicaid Services in May announced a six-month nationwide moratorium on new Medicare enrollments for hospices and home health agencies and the administration has publicly discussed withholding Medicaid funds from states that do not address fraud, officials said.

Separately, a report from the Paragon Health Institute estimated that 47% of Mississippi sign-ups during the 2026 Affordable Care Act enrollment period were improper and could cost taxpayers more than $600 million, the institute said. Chaney also told the Magnolia Tribune that insurers Cigna and Molina plan to leave the state exchange in 2027 and criticized some brokers’ practices, saying carriers enrolled people without their knowledge and that the firms received the sickest patients.

Chaney said he will not force insurers to cover drugs that are not required by federal law and added that he does not want public funds used to support what he described as certain lifestyles, comments he made to the Magnolia Tribune.

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