Medicare Advantage insurers are eliminating commission payments for some of their plans, a move that has drawn criticism from broker associations.
Insurers typically pay brokers commission payments for enrolling new members, or renewing existing members in Medicare Advantage and Medicare Part D plans. In July 2024, Centene said it would no longer pay broker commissions for enrolling members in its Part D plans.
Over the following 12 months, several other insurers have cut commissions for some of their Medicare Advantage or Part D plans. The moves come as insurers are facing cost pressures in their MA business as medical costs in the program keep climbing.
With rising medical costs, many insurers are prioritizing margins, rather than investing in acquiring members. In 2024, former Aetna CEO Brian Kane said the company would prioritize “margins over membership” in 2025.
In June, UnitedHealthcare, the largest Medicare Advantage insurer, cut commissions for what it said was a “small percentage” of its MA plans.
Groups representing brokers have decried the changes, saying they undermine Medicare beneficiaries’ access to professionals who can help them navigate MA enrollment. MA brokers must be licensed by CMS.
The National Association Benefits and Insurance Professionals called UnitedHealthcare’s decision “shortsighted.”
“At a time when seniors are grappling with rising costs, changing formularies and overwhelming plan options, UnitedHealthcare is cutting off the very people best equipped to help — licensed agents who know their communities, understand their clients and act in their best interest,” CEO Jessica Brooks-Woods said.
The NABIP and the National Association of Insurance and Financial Advisors, which also represents brokers, have asked CMS to bar insurers from making mid-year changes to their compensation structures.
Five insurers eliminating some commissions:
- Blue Shield of California eliminated broker commissions for new enrollments into Medicare Advantage PPO plans in Alameda, Orange and San Diego counties, effective July 1.
- UnitedHealthcare ended broker commission payments for some of its Medicare Advantage plans, also effective July 1. The NABIP said UnitedHealthcare is eliminating commissions for more than 100 of its MA plans in more than 20 states.
- Elevance Health eliminated broker commissions for new enrollments in some markets beginning in November 2024. The insurer later pulled some of its plans from online broker platforms.
- In November 2024, Aetna eliminated commissions for some Medicare Advantage plans in nine states and the District of Columbia.
- Cigna pulled commissions for new enrollees in some PPO plans in New York, New Jersey, Connecticut and Georgia in November 2024. The commission changes affected less than 3% of Cigna’s targeted sales markets outside of New York, the company said.
