Medicare agents might not recommend the best plans this year as profits take priority

That’s why roughly one in three people in Medicare hire an agent or broker. (Independent agents represent multiple insurers and are paid by the companies; brokers, also generally paid by insurers, let people choose policies and send them to agents for purchases.) But there’s a big problem using a Medicare agent right now.

Although 96% of Medicare Advantage and Part D plans contract with agents, Aetna, Centene (which sells Wellcare policies), Cigna, Elevance (which sells Anthem policies), Humana and United Healthcare have stopped paying agents commissions on some Medicare Advantage plans in certain markets.

Which insurers aren’t paying some agents

Centene, the largest Part D insurer, has stopped paying commissions on all its standalone Part D plans. Aetna and Cigna aren’t paying commissions for some new Part D plans and Aetna, Cigna, Elevance, Humana and United Healthcare have halted commissions for some of their Medicare Advantage plans.

“This is not a decision that we took lightly, but it was the right thing to do, Elevance chief financial officer Mark Kaye said at the UBS Healthcare conference, according to Modern Healthcare.

The Association of Health Insurance Programs (AHIP), did not respond to Fortune’s request for a comment about some agents and brokers not getting paid to sell Medicare policies.

In many cases, the insurers’ Medicare Advantage businesses have grown so fast in 2024, companies are curbing commissions to limit sales.

“They say, ‘Oh my gosh, we need to tighten things up so we don’t get outsized growth in a product that was already barely hanging on,’” says Vijay Kotte, CEO of the health insurance marketplace GoHealth.

The insurers sometimes aren’t paying agents for policy renewals either.

“Renewal commissions have historically [been] seen by the industry as a way to earn a commission as long as the member stays in the plan—an untouchable,” says Sam Melamed, founder of the Insurance Forums online community for agents. The maximum commission for Part D and Medicare Advantage renewals, set by the Centers for Medicare and Medicaid Services, is 50% of the amount for initial purchases.

What it means for…