Illinois Pans Medicare Commission Strategy

Some insurers seem to be using commission schedules, such as schedules that pay a 0% commission to agents who sell coverage to disabled Medicare beneficiaries, to avoid the requirements of the law, McRaith writes in Commissioner’s Bulletin 2008-03.

Under Illinois law, “companies may not establish procedures designed to circumvent the requirements of [the law] by any means, including setting commission schedules for the under 65 population made eligible for Medicare supplement policies due to disability that are different than commissions provided to agents selling such policies to persons that become eligible for Medicare due to age,” McRaith writes.