At least three major insurers are eliminating broker commissions for some Medicare Advantage plans.
According to documents shared with Becker’s, Elevance Health will eliminate commission payments beginning Nov. 1 for new enrollees in some Anthem Blue Cross Blue Shield plans in 15 states. The company will still pay commissions to brokers for renewing existing members.
Aetna will eliminate commissions for some plans in nine states and Washington, D.C., according to documents shared with Becker’s.
“Aetna routinely reviews and updates our distribution strategy, including the commissionable status of our plan offerings and the channels through which we distribute them,” an Aetna spokesperson said in a statement shared with Becker’s.
Beginning Nov. 4, Cigna will no longer pay commissions for new enrollees in some PPO plans in 25 states and Washington, D.C. The commission changes affect less than 3% of Cigna’s targeted sales markets outside of New York, the company said in a message sent to brokers shared with Becker’s.
“We recognize that mid-AEP changes can be disruptive to your sales approach, and we do not make these decisions lightly,” Cigna said in its message to brokers. “By making small adjustments now, we can better maintain the stability you expect of us and continue to deliver on our commitment to serving our mutual customers. We will continue offering a range of commissionable plan options across our service areas that meet beneficiaries’ personal needs, budgets, and lifestyles.”
Many Medicare Advantage and Part D plans pay brokers compensation for enrolling new members and renewing existing members in their plans. CMS has proposed capping commission payments to brokers at $611 per new member enrolled, though the limit is being challenged in court.
In an Oct. 31 statement, the National Association of Benefit and Insurance Professionals, which represents brokers, said the rising drug costs and star rating declines have led some insurers to take “drastic action.”
“By eliminating agent commissions in certain Medicare plans, Aetna and Anthem have created a substantial barrier for seniors who rely on agents to understand their plan options, manage costs and access the care they need,” Jessica Brooks-Woods, CEO of the association, said. “This disruption hits particularly hard at a time when seniors are already grappling with higher prescription costs and shrinking benefits in their Medicare Advantage plans.”
Medicare Advantage and Part D commissions were set by CMS in July. Carriers can choose to not pay commissions, but they cannot go above the amounts set by CMS.
In August, Centene said it would eliminate broker commissions for all of its Medicare Part D plans. The company said it decided to eliminate payments for renewals and new members because of major provisions of the Inflation Reduction Act taking effect in 2025.
Becker’s has reached out to Elevance Health for comment and will update this article if more information becomes available.