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Medicare agents are fighting back against the recent decision by some health plans to discontinue paying commissions on Medicare Part D plans.
More than 600 agents signed a petition on Change.org, demanding that WellCare pay agents their commissions they earned from the sale of the carrier’s Part D plans. Health Agents for America posted the petition and circulated it among its members. HAFA is asking WellCare “to rescind its decision and to ensure that agents are compensated fairly for their work.
“HAFA argues that fair compensation is not just a matter of equity for agents—it’s a necessity for protecting the seniors who depend on them,” the association said in its petition. “HAFA’s message is clear: Without fair compensation, the system fails everyone—most of all, the seniors who need it the most.”
Meanwhile, the National Association of Benefits and Insurance Professionals issued a statement this week condemning the decision made by some health plans to stop paying Part D commissions.
“These decisions by health plans threaten not only the livelihoods of Medicare agents but also the communities they serve and the seniors who rely on their expert guidance to navigate the complex Medicare system,” said NABIP CEO Jessica Brooks-Woods in a statement.
An agent gives his perspective
Mark A. Squires is president of Wise Choices Financial in Independence, Mo., and has worked in the Medicare market for more than 20 years. He told InsuranceNewsNet that most agents in the Medicare space are self-employed, or salaried with commissions paid to the agency.
"With Part D Coverage being a vital part of the Medicare puzzle, and arguably the most complex piece, Medicare beneficiaries need assistance in making sense of the maze of choices of coverage," he said. "Agents should not be expected to work without being paid. This leaves the Medicare population with few options other than doing their own research, contacting Medicare directly or contacting their SHIP. Neither Medicare personnel nor SHIP volunteers are permitted to make specific recommendations."
A huge part of the value agents and agencies provide to Medicare beneficiaries is ongoing service throughout the plan year, Squires said.
"In our organization, we refer to that proposition as 'lifetime claims support.' We document the service we provide and track the time used in servicing our clients, divided by product line. We invest more time per member on prescription drug plan questions and support than any other product line in our arsenal.
"Since we will not be paid, we cannot support the Medicare community."
Squires said his agency will continue to conduct prescription drug plan reviews for clients who have Medicare Supplements with a prescription drug plan.
"If the most appropriate PDP option based strictly on dollars and cents is one where we will not be paid, the agent will offer an A-B option. Option A is the plan the is most appropriate based on the dollars and cents with the caveat that we do not get paid, thus we cannot facilitate the enrollment. Nor can we provide any ongoing service in the plan year. Option B is a plan where we get paid and can offer a high level of service. If the member chooses Option A we will provide them with contact instructions for the carrier. If the member chooses Option B we will proceed as normal.
"This is not going to be good for the Medicare population."
Brooks-Woods said NABIP leadership reached out to WellCare/Centene senior leadership about the precedent they are setting in discontinuing commissions.
[EXTERNAL LINK] - Agents fight for Part D commissions
More than 600 agents signed a petition on Change.org, demanding that WellCare pay agents their commissions they earned from the sale of the carrier’s Part D plans. Health Agents for America posted the petition and circulated it among its members. HAFA is asking WellCare “to rescind its decision and to ensure that agents are compensated fairly for their work.
“HAFA argues that fair compensation is not just a matter of equity for agents—it’s a necessity for protecting the seniors who depend on them,” the association said in its petition. “HAFA’s message is clear: Without fair compensation, the system fails everyone—most of all, the seniors who need it the most.”
Meanwhile, the National Association of Benefits and Insurance Professionals issued a statement this week condemning the decision made by some health plans to stop paying Part D commissions.
“These decisions by health plans threaten not only the livelihoods of Medicare agents but also the communities they serve and the seniors who rely on their expert guidance to navigate the complex Medicare system,” said NABIP CEO Jessica Brooks-Woods in a statement.
An agent gives his perspective
Mark A. Squires is president of Wise Choices Financial in Independence, Mo., and has worked in the Medicare market for more than 20 years. He told InsuranceNewsNet that most agents in the Medicare space are self-employed, or salaried with commissions paid to the agency.
"With Part D Coverage being a vital part of the Medicare puzzle, and arguably the most complex piece, Medicare beneficiaries need assistance in making sense of the maze of choices of coverage," he said. "Agents should not be expected to work without being paid. This leaves the Medicare population with few options other than doing their own research, contacting Medicare directly or contacting their SHIP. Neither Medicare personnel nor SHIP volunteers are permitted to make specific recommendations."
A huge part of the value agents and agencies provide to Medicare beneficiaries is ongoing service throughout the plan year, Squires said.
"In our organization, we refer to that proposition as 'lifetime claims support.' We document the service we provide and track the time used in servicing our clients, divided by product line. We invest more time per member on prescription drug plan questions and support than any other product line in our arsenal.
"Since we will not be paid, we cannot support the Medicare community."
Squires said his agency will continue to conduct prescription drug plan reviews for clients who have Medicare Supplements with a prescription drug plan.
"If the most appropriate PDP option based strictly on dollars and cents is one where we will not be paid, the agent will offer an A-B option. Option A is the plan the is most appropriate based on the dollars and cents with the caveat that we do not get paid, thus we cannot facilitate the enrollment. Nor can we provide any ongoing service in the plan year. Option B is a plan where we get paid and can offer a high level of service. If the member chooses Option A we will provide them with contact instructions for the carrier. If the member chooses Option B we will proceed as normal.
"This is not going to be good for the Medicare population."
Brooks-Woods said NABIP leadership reached out to WellCare/Centene senior leadership about the precedent they are setting in discontinuing commissions.
[EXTERNAL LINK] - Agents fight for Part D commissions
