Medicare agents are fighting back against the recent decision by some health insurance companies to stop paying commissions on Medicare Part D plans.
More than 600 insurance agents have signed a petition on Change.org demanding that WellCare pay agents the commissions they earned from selling the insurer’s Part D plans. Health Agents for America published the petition and distributed it among its members. HAFA is calling on WellCare to “reverse its decision and ensure that agents are fairly compensated for their work.”
“HAFA argues that fair compensation is not just a matter of justice for agents – it is a necessity to protect the seniors who depend on them,” the association’s petition states. “HAFA’s message is clear: without fair compensation, the system fails everyone – especially the seniors who need it most.”
Meanwhile, the National Association of Benefits and Insurance Professionals released a statement this week condemning the decision of some health insurance companies to stop paying commissions for Part D.
“These health insurance decisions threaten not only the livelihoods of Medicare agents, but also those of the communities they serve and the seniors who rely on their expert advice to navigate the complex Medicare system,” NABIP Executive Director Jessica Brooks-Woods said in a statement.
Brooks-Woods said NABIP leadership has reached out to WellCare/Centene leadership and informed them of the precedent they are setting by discontinuing the commissions.
“We invite policymakers to talk about how these decisions impact Medicare beneficiaries and their families. We are asking important questions and exploring all possible options to ensure our seniors and their loyal partners are protected,” she said.
Medicare Part D plans “increasingly complex”
Brooks-Woods said Medicare Part D plans are “becoming increasingly complex and require agents to stay up to date through ongoing training.
“These agents invest significant time in educating their clients and ensuring that seniors and vulnerable populations receive the personalized advice they need to make informed decisions about their health care. Their work goes beyond enrollment; they help clients choose affordable medication options and resolve claims. For less than $4.60 per month per client, these agents are anything but greedy; they are dedicated professionals who are committed to the best interests of their clients.”
HAFA relies on the Inflation Reduction Act
Ronnell Nolan, president and CEO of HAFA, told InsuranceNewsNet that insurance carriers are using the Inflation Reduction Act as a reason to eliminate agent commissions for Part D plans. The Inflation Reduction Act created a $2,000 annual cap on Medicare prescription drugs starting in 2025.
“But it’s not just about cutting commissions, it’s about the senior who needs help choosing Medicare Part D no longer having a professional to help them. We talk all the time about how difficult it is to choose the right plan with the right drug at the right price and that people need a representative. Now WellCare has made this decision and said they’re going to blame it on the Inflation Reduction Act and cut commissions.”
Nolan said her members told her they had signed contracts to represent WellCare during the upcoming open enrollment period before the carrier told them it would not pay commissions for Part D plans.
“The consumer has the right to choose a professional if they want to, and that professional also has the right to be paid for it. We should not be asked to work for free,” she said.
An agent gives his perspective
Mark A. Squires is president of Wise Choices Financial in Independence, Missouri, and has worked in the Medicare market for more than 20 years. He told InsuranceNewsNet that most agents in the Medicare field are self-employed or employed and are paid commissions to the agency.
“Because Part D coverage is a crucial piece of the Medicare puzzle, and arguably the most complex piece, Medicare beneficiaries need help navigating the maze of coverage options,” he said. “Agents should not be expected to work without pay. This leaves Medicare beneficiaries with few options other than doing their own research, contacting Medicare directly, or contacting their SHIP. Neither Medicare employees nor SHIP volunteers are permitted to make specific recommendations.”
A big part of the value that agents and agencies provide to Medicare beneficiaries is ongoing care throughout the plan year, Squires said.
“In our organization, we call this offering ‘lifetime claims support.’ We document the service we provide and track the time we spend serving our customers by product line. We spend more time per member on drug plan questions and support than any other product line in our arsenal.
“Because we are not paid, we cannot support the Medicare community.”
Squires said his agency will continue to review drug plans for clients who have Medicare supplemental insurance and a drug plan.
“If the most appropriate PDP option based purely on dollars and cents is one where we are not paid, the agent will offer an AB option. Option A is the plan that is most appropriate considering we are not paid and therefore cannot facilitate enrollment. We also cannot provide ongoing services in the plan year. Option B is a plan where we are paid and can provide a high level of service. If the member chooses Option A, we will provide them with contact instructions for the provider. If the member chooses Option B, we will proceed as usual.
“This will not be good for the Medicare population.”
WellCare did not respond to a request for comment from InsuranceNewsNet.
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