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As you are probably aware, Wellcare announced that in 2025, they will not pay commissions on over 3 million Medicare Prescription Drug Plans for both new enrollments and renewals.
I believe this to be unprecedented in our industry. We have seen carriers in Medicare insurance stop paying commissions before, but it has always been on future business and not past business.
But, canceling commissions on an existing book of business is something we have never seen from a national carrier and it has wide implications for the long-term viability of our profession.
It appears that Wellcare had provisions in their contract that allowed them to do this, so it may be legal. However, it is clearly an unethical and immoral act. The contracts also stated that agents would be paid for the life of each policy.
I believe this to be unprecedented in our industry. We have seen carriers in Medicare insurance stop paying commissions before, but it has always been on future business and not past business.
But, canceling commissions on an existing book of business is something we have never seen from a national carrier and it has wide implications for the long-term viability of our profession.
It appears that Wellcare had provisions in their contract that allowed them to do this, so it may be legal. However, it is clearly an unethical and immoral act. The contracts also stated that agents would be paid for the life of each policy.