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Life Health > Health Insurance > Medicare Planning

Group Proposes Cap on Medicare Advantage Plan Brokers’ Total Comp

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A health plan group says Medicare Advantage program managers should do more to keep insurers from using high broker compensation to court brokers.

The group, the Alliance of Community Health Plans, put the broker compensation cap proposal in a new preview of alliance ideas for improving the Medicare Advantage program.

The maximum Medicare Advantage broker commission is $750 per enrollment this year, but plans can pay $1,300 per enrollment or more by adding administrative fees and other extra fees.

AHCP is developing a proposal that would put new limits on Medicare Advantage plan payments of administrative fees and other non-commission fees and require plans to report total broker compensation amounts, the group said.

What It Means

If you sell Medicare Advantage plans, implementation of the ACHP broker comp proposal could cut your pay.

If you help retirement planning clients understand their Medicare coverage, the proposal could lead to changes in which plans your clients use.

The Reasoning

AHCP contends that expanding the current Medicare Advantage program broker commission limit to include administrative fees would improve program integrity by keeping brokers from steering clients to certain health plans rather than others because of total payment amounts.

Credit: denisismagilov.com/Adobe Stock


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