Senate report scrutinizes Medicare Advantage marketing spend, broker practices 

Medicare Advantage insurers are spending an increasing amount on fees and commissions paid to brokers, a report from the office of Senate Finance Committee Ranking Member Ron Wyden found. 

Mr. Wyden said he planned to open an investigation into five third-party Medicare Advantage marketing organizations in 2024. The report, published March 25, details the investigation’s findings. 

The report states that Medicare Advantage plans “increasingly rely” on third-party marketing organizations and lead generators to drive enrollment. Spending on agent and broker fees increased from $2.4 billion in 2018 to $6.9 billion in 2023, according to the report. 

Here are seven more things to know: 

1. The federal and state governments generally have limited oversight of the companies insurers contract with for marketing and lead generation. 
   
   
2. The surge in marketing spending has created incentives for companies to “limit which MA plans a broker presents to a client,” which can result in brokers “offering enrollees MA plans that do not meet their health needs in order to access commissions or administrative payments.”
   
   
3. The report recommended several policies to reform Medicare Advantage sales and marketing, including prohibiting Medicare Advantage plans from paying for platforms that limit which plans an agent or broker sees when meeting with enrollees. 
   
   
4. The report also recommended Congress grant CMS additional authority to oversee contracted marketing and lead generation organizations. CMS should also consider banning offshore call centers in MA marketing. 
   
   
5. In addition, the report recommended requiring agents and brokers to act as fiduciaries for enrollees. 
   
   
6. In a March 28 statement, Jessica Brooks-Woods, CEO of the National Association of Benefits and Insurance Professionals said the group is “encouraged” by the Senate Finance Committee’s efforts to “crack down on deceptive marketing practices.” 
   
   
7. The association wished to clarify several areas of the report, Ms. Brooks-Woods said. Marketing costs “do not raise premiums for beneficiaries” or increase taxpayer costs for the MA program, she said. 

Read the full report here.