The Affordable Care Act saw enrollment grow by 21 percent this year, and now some payers are cutting the commissions of private brokers, according to Fortune.
Bright HealthCare is one of the payers getting rid of commissions for brokers who enroll people in coverage. A February note from the company cited "extraordinary growth" in health plan enrollments, but said it wanted to "suspend growth during this special enrollment season" and would be ending broker commissions on April 1. Oscar Health, Molina Healthcare and some Blue Cross Blue Shield plans have taken similar steps, according to Fortune.
Insurance trade groups and federal regulators are warning the move may harm low-income people.
"Those are people who often need help the most," Marcy Buckner, senior vice president for government affairs at the National Association of Health Underwriters, told Fortune. "Agents and brokers want to help consumers, but they also have to keep their doors open. If they're not earning commissions, they may not be able to help those consumers."
"We are concerned about the impact on consumers, particularly those consumers whose circumstances lead them to enroll mid-year, and are actively investigating this matter," Ellen Montz, PhD, director of the Center for Consumer Information and Insurance Oversight at CMS, said in a statement to Fortune.
"If insurers are not paying commissions for the special enrollment period, that will diminish sign-ups," Sarah Lueck, vice president for health policy at the Center on Budget and Policy Priorities, told Fortune.
Brokers also argue that ditching commissions mid-enrollment may violate federal or state discrimination rules.
CMS guidance from 2016 warns payers against practices that discourage "the enrollment of individuals with significant health needs in health insurance coverage."
In a statement to Fortune, Bright HealthCare said the industry is trying "to ensure continued access to care at affordable prices" and is "working closely with its brokers to implement the [special enrollment period] commissions change as part of the solution."