Group Asks White House to Stop Picking on Medicare Agents

The National Association of Benefits and Insurance Professionals wants the Biden administration to take NABIP members off a list of corporate rip-off bad guys.

The White House and the U.S. Department of Health and Human Services included efforts to tighten the rules for Medicare Advantage plan brokers in a new description of administration efforts to lower health care costs.

HHS has “proposed a rule that, if finalized, will prohibit insurance companies from paying brokers to steer patients towards certain plans based on compensation, rather than options that meet best patient health needs,” the White House says in the statement, which also touts efforts to crack down on “junk fees” across the economy.

Jessica Brooks-Woods, NABIP’s chief executive officer, said in a response that Medicare Advantage plan satisfaction is high partly because agents work hard to match clients with the right plans.

“Medicare agents are vital advocates for seniors navigating the complex world of health care coverage,” Brooks-Woods said.

NABIP members do want to work with policymakers in a constructive way to make sure the Medicare plan market is fair and effective, she said.

NABIP: NABIP is the Washington-based group formerly known as the National Association of Health Underwriters. It represents 100,000 health insurance agents, brokers, general agents, consultants and benefits professionals.

The Medicare Advantage controversy: The Medicare Advantage program gives private insurers a chance to offer plans that provide an alternative to traditional Medicare coverage.

Opponents have accused the plans of getting too much cash from the federal government and skimping on coverage.

Surveys appear to show high Medicare Advantage plan enrollee satisfaction levels.

In February, for example, the Commonwealth Fund, an independent research center, reported that 65% of the enrollees in Medicare Advantage plans and 65% of the enrollees in traditional Medicare said their coverage had fully meet their expectations.

NABIP’s views: NABIP said the HHS broker compensation proposal reflects a misunderstanding about how Medicare agents are paid.

“Medicare agents operate under a fixed compensation structure, established and regulated by the Centers for Medicare and Medicaid Services,” the group said. “Unlike some industries where financial incentives might lead to biased recommendations, Medicare agents do not stand to gain more by steering beneficiaries towards specific plans.”

Jessica Brooks-Woods. Credit: Pittsburgh Group on Health