Elevance eliminated broker commissions for new enrollments in some markets beginning Nov. 1.
Speaking at an investor conference on Nov. 12, Mr. Kaye said the company did not take the decision to cut some commissions lightly, but “it was the right thing to do.”
“Heading into AEP we anticipated significant disruption, and even more so once we determined that more than 2 million [beneficiaries] received notices of upcoming plan terminations just prior to AEP,” Mr. Kaye said. With that in mind, we focused our efforts on markets where we saw the highest level of disruption resulting from competitor actions.”
Elevance Health offerings accounted for less than 2% of the discontinued plans, Mr. Kaye said.
Several insurers exited markets in 2025, facing rising costs and lowered reimbursement rates. In 31 states, the number of Medicare Advantage plans available will decrease, according to an analysis by Avalere commissioned by the Better Medicare Alliance.
The company is expecting Medicare Advantage growth slightly above the industry average, Mr. Kaye said, partly driven by strong retention of existing members. The company did not eliminate commission for plan renewals, he said.
Other Medicare Advantage plans opted to cut broker commissions for new enrollees. Cigna and Aetna also ended commissions in some markets beginning in November.
