UnitedHealth Group will cease paying commissions to brokers who enroll new beneficiaries into nearly 200 Medicare Advantage products in 39 markets, the company notified third-party sellers Monday.
The UnitedHealthcare parent company has been reeling since it reported major Medicare Advantage headwinds in the first quarter, withdrew its annual earnings guidance and underwent a sudden change in top leadership.
Medicare Advantage brokers received an update from the market-share leader that details its revised compensation parameters, which take effect July 1.
“The 2025 MA Plan Commission Schedule is being amended to reduce agency upline commission payments, with differing reductions based on product,” Kim Farner, chief distribution officer for UnitedHealthcare Medicare plans, wrote in the notice.
Sam Melamed, CEO of the dental and vision insurance agency NCD and founder of a social media platform for insurance marketers called Insurance Forums, said brokers learned of UnitedHealth Group’s strategic shift Monday.
Among other modifications, UnitedHealth Group will no longer pay commissions in all or parts of 38 states and the District of Columbia for more than 180 plans. The list is dominated by PPOs and includes some HMOs and Special Needs Plans.
“A small percentage of our Medicare Advantage plans will be decommissioned for new enrollments only. These plans will remain available for enrollment. Importantly, we will continue to pay renewal commissions on members enrolled in these plans prior to July 1,” UnitedHealthcare said in a statement. “We value the important role that agents and brokers play in helping members access the care they need.”
These changes to Medicare Advantage compensation follows the company’s decision to end commissions for new Medicare Part D customers starting this month.
Health insurance companies often cut or eliminate compensation to third-party marketers when they want to reduce their exposure to high-cost members, especially new enrollees.
Last week, Moody’s Ratings and S&P Global Ratings each downgraded UnitedHealth Group’s credit from “stable” to “negative.”