The 2025 Medicare landscape is shifting, with some Medicare Advantage (MA) plans now classified as non-commissionable.
You might be thinking, “Haven’t we had enough changes in the Medicare market already this year?” It’s natural to feel overwhelmed or frustrated, especially when these changes could impact your earnings. However, remember that change often brings new opportunities for growth and success.
Let’s break down why certain carriers are making this adjustment and explore how you can stay motivated and thrive during this Annual Enrollment Period (AEP)!
Which Carriers Are Discontinuing Medicare Advantage Commissions in 2025?
In November 2024, four carriers—Aetna, Cigna Healthcare, Elevance Health (Anthem Blue Cross and Blue Shield), and Medical Mutual—announced they will no longer pay commissions on certain Medicare Advantage (MA) plans in select markets.
This change applies to new enrollments with effective dates starting January 1, 2025. It impacts sales made on or after the carriers’ specified dates: November 1, 2024, for Aetna and Elevance Health; November 4, 2024, for Cigna Healthcare; and November 18, 2024, for Medical Mutual.
The good news is that renewal commissions for existing members remain unaffected. For a full list of affected plans and specific details, connect with your Essential Care sales specialist. As always, Essential Care is staying ahead of these industry changes with the insights and strategies you need to keep your business running smoothly.
Why Are Carriers Introducing Non-Commissionable Medicare Advantage Plans for 2025?
Carriers have attributed these changes to efforts aimed at maintaining stability in response to the Inflation Reduction Act (IRA) and its impact on Medicare. Key provisions include the introduction of a $2,000 out-of-pocket (OOP) cap for Part D, no cost-sharing for adult vaccines, expanded low-income subsidies, and other significant updates.
In their announcement, Aetna stated, “Aetna routinely reviews and updates our distribution strategy, including the commissionable status of our plan offerings and the channels through which we distribute them… We recognize that mid-AEP changes can be disruptive to your sales approach, and we do not make these decisions lightly.”
Similarly, Cigna Healthcare noted in their communication, “By making small adjustments now, we can better maintain the stability you expect of us and continue to deliver on our commitment to serving our mutual customers. We will continue offering a range of commissionable plan options across our service areas that meet beneficiaries’ personal needs, budgets, and lifestyles.”
These changes, while challenging, are part of broader efforts by carriers to adapt to new regulations and ensure long-term stability in the Medicare marketplace.
Why Make This Change During AEP?
The Annual Enrollment Period (AEP) is a peak time for selling Medicare Advantage (MA) plans, as beneficiaries are actively reviewing and updating their coverage. If carriers need to adjust spending and funding, acting now ensures they’re addressing these challenges proactively.
Making certain plans non-commissionable may be a strategy to manage financial pressures and stabilize resources. Some have speculated that during the COVID-19 pandemic, many beneficiaries delayed routine care and treatments to follow safety protocols. With healthcare usage returning to normal, carriers may now be facing a surge—or even an “overuse”—of Medicare plans and benefits, prompting this financial recalibration.
Regardless of the reasons behind this change, it’s the reality we’re navigating. Resilient and adaptable agents know how to pivot, and with the right strategies, you can still make this AEP a successful one!
What Should You Do If Your Business Is Affected?
Simply put, continue to quote and offer non-commissionable plans when they are the best fit for your clients.
While you won’t earn a commission from these sales, there’s more to gain in the insurance business than just money. Writing an enrollment for a non-commissionable plan can help you build trust, earn respect, foster loyalty, and create opportunities—all invaluable assets to your long-term success.
Satisfied clients are more likely to refer you to their friends and family, trust your advice on ancillary products that enhance their coverage, and remain part of your book of business. Referrals, compliant cross-selling opportunities, and solid client retention—all from a commission-free sale? That still sounds like a win to us!
Be Ready to Cross-Sell Effectively
Diversifying your product portfolio is key to growing your business and meeting your clients’ needs. Consider offering ancillary products, life insurance, and Affordable Care Act (ACA) coverage to create additional income streams and enhance your clients’ experience.
Timing is everything: If an ancillary product is selected on the Scope of Appointment during your MA sales meeting, you can discuss it immediately. If not, save the conversation for a follow-up appointment.
Dental, Vision, and Hearing Insurance (DVH)
When proposing DVH insurance, take the time to evaluate your client’s current coverage and identify gaps or areas for improvement. Share your recommendation and explain why it’s a valuable addition to their plan. Many MA plans offer DVH coverage, but it may not fully meet the needs of clients requiring ongoing care. Since DVH policies have no underwriting requirements, they’re easy to sell year-round. Always ensure your recommendation aligns with the client’s best interests—never just to offset a non-commissionable sale.
Hospital Indemnity Plans
If you’re selling Medicare Advantage plans, offering hospital indemnity plans is a natural and beneficial cross-sale. MA plans can leave beneficiaries vulnerable to significant out-of-pocket costs, such as hospital stays, ER visits, or observation fees. A hospital indemnity plan can fill those gaps by providing a lump sum payment to cover expenses like deductibles, surgeries, medications, transportation, lodging, and more. These plans are an excellent way to provide peace of mind and additional financial security for your clients.
By thoughtfully incorporating these products into your offerings, you can add value to your clients’ coverage while growing your business compliantly and effectively.
There’s still plenty of opportunity for growth, even with some MA plans becoming non-commissionable. At Essential Care, we’re here to keep you informed, help you diversify your portfolio, and provide top-notch sales support and educational resources. Join Essential Care today and continue building on the success you’ve already achieved as an agent!
Not affiliated with or endorsed by Medicare or any government agency.
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