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As the MA market shifts, brokers face beneficiary churn, payers' vertical integration, and compensation uncertainty. To survive, they'll need to expand services and professionalize capabilities.
Brokers are vital to the Medicare Advantage (MA) ecosystem, representing 70 percent of MA distribution. Today, though, brokers need to rethink their strategy as they sort through some of the biggest shifts in the MA market in the past two decades. At a time when payers are pulling back on benefits to navigate profitability challenges, brokers find themselves at the forefront of dealing with evolving beneficiary preferences, payers' strategic shifts, and potential regulatory scrutiny.
These shifts are consolidating the brokerage industry. For example, changes in MA benefits heading into 2025 are leaving many seniors uncertain about their best options, leading to increased switching. This member churn means that, as brokers scramble during the annual enrollment period, customer acquisition costs are soaring. This pressure is pushing some brokers out of the market while sending others looking for acquirers. As acquirers expand, they can demand larger volume-based administrative payments, further cementing their advantage.
Is it game over for smaller brokers? Not quite. But to remain competitive, brokers must pursue new strategies to succeed. This article examines dominant trends among beneficiaries, payers, and regulatory environments and outlines a response that can help brokers.
[EXTERNAL LINK] - The future of Medicare Advantage
Brokers are vital to the Medicare Advantage (MA) ecosystem, representing 70 percent of MA distribution. Today, though, brokers need to rethink their strategy as they sort through some of the biggest shifts in the MA market in the past two decades. At a time when payers are pulling back on benefits to navigate profitability challenges, brokers find themselves at the forefront of dealing with evolving beneficiary preferences, payers' strategic shifts, and potential regulatory scrutiny.
These shifts are consolidating the brokerage industry. For example, changes in MA benefits heading into 2025 are leaving many seniors uncertain about their best options, leading to increased switching. This member churn means that, as brokers scramble during the annual enrollment period, customer acquisition costs are soaring. This pressure is pushing some brokers out of the market while sending others looking for acquirers. As acquirers expand, they can demand larger volume-based administrative payments, further cementing their advantage.
Is it game over for smaller brokers? Not quite. But to remain competitive, brokers must pursue new strategies to succeed. This article examines dominant trends among beneficiaries, payers, and regulatory environments and outlines a response that can help brokers.
[EXTERNAL LINK] - The future of Medicare Advantage
