Insurance Carriers Make Select Medicare Advantage Plans Non-Commissionable for 2025

The latest 2025 Medicare adjustment involves Medicare Advantage (MA) plans becoming non-commissionable.

You might be thinking, “OK, enough changes to the Medicare market this year.” It’s easy to become overwhelmed and frustrated, especially when they could affect your income, but try to remember, change can make room for new opportunities and chances for growth.

Here’s the scoop on why some carriers are making this move and some encouragement to prevent this from hindering your Annual Enrollment Period (AEP) success!

Which Carriers Aren’t Paying Medicare Advantage Commissions in 2025?

Throughout November 2024, four carriers — Aetna, Cigna Healthcare, Elevance Health (Anthem Blue Cross and Blue Shield), and Medical Mutual — have announced they will no longer pay commissions on certain MA plans in select markets.

This affects new sales with January 1, 2025, effective dates either throughout the remainder of AEP or beyond 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).

Renewals of existing members will not be impacted. For specific details and listings of the plans that are now non-commissionable, you can reach out to your Ritter sales specialist. Like all industry changes, Ritter is on top of this one, and we have the details and tips you need, so your business won’t skip a beat.

Why Are Carriers Announcing 2025 Non-Commissionable Medicare Advantage Plans?

Generally, carriers have stated they’re making these changes to maintain stability amid Inflation Reduction Act (IRA) drug changes taking effect. Chief among these changes is the Part D $2,000 out-of-pocket (OOP) threshold in addition to no cost-sharing for adult vaccines, expanded low-income subsidies, and more.

Aetna states in their announcement email, “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.”

Additionally, Cigna Healthcare addressed in its announcement email that, “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.” 

Why Decide to Do This During AEP?

AEP is prime time for a large number of MA plans to be sold, since Medicare beneficiaries can review and make changes to their coverage during this time. If MA plans’ spending and funding needs adjusted, insurers are getting the horse in front of the cart, so to speak.

Making these plans non-commissionable could be an effort to correct the outpour of funds now being used.

We’ve seen agents speculate that, during the COVID pandemic, many beneficiaries were using their coverage less by postponing routine care check-ups or putting off seeking care, in an effort to comply to the safety guidelines and reduce the spread of the illness. Now, as things have returned to normal, so has use of health insurance coverage, causing an influx, or some may say “overuse,” of Medicare plans and benefits. Making these plans non-commissionable could be an effort to correct the outpour of funds now being used.

Bottom line, no matter what the reason, this is the reality we’re facing. Successful insurance agents are resilient and used to change. You can pivot from this and still have a successful AEP!

What Should You Do If Your Business Is Impacted?

To put it simply, continue to quote and offer non-commissionable plans if it’s the best option for your clients.

We know you won’t make money from the sale, but money isn’t the only thing worth gaining in the business of selling insurance. Writing an enrollment for a non-commissionable plan can earn you trust, respect, loyalty, and opportunity — all invaluable assets to your business.

Money isn’t the only thing worth gaining in the business of selling insurance.

Happy and satisfied clients may refer you to family and friends, trust your recommendations of ancillary products that can complete their coverage, and stay in your book of business. Referrals, compliant cross-selling opportunities, and client retention, all from a commission-less sale? Still sounds like a win to us!

Make Sure You’re Equipped to Cross-Sell

We frequently recommend diversifying and selling multiple product lines. Consider selling ancillary and life products and Affordable Care Act (ACA) insurance to generate new income streams and better meet the needs of clients.

Note: If an ancillary health product is checked on the Scope of Appointment for your MA sales appointment, you can start the discussion then. If not, wait and present ancillary options and life insurance during a follow-up appointment!

Dental, Vision, and Hearing Insurance

We recommend that, when you’re proposing dental, vision, and hearing (DVH) insurance to clients, you analyze their current plan along with their coverage needs and wants. Tell them your recommendation and explain why you think it’s a beneficial option for them to consider. DVH insurance has no underwriting requirements, and you can write these policies anytime throughout the year. MA plans can be equipped with robust DVH supplemental coverage, but it may not be enough, especially for clients whose dental, vision, and/or hearing health may need ongoing care and improvement.

Of course, never push ancillary coverage just to make an extra sale or to combat a non-commissionable plan sale. But, if it can benefit your client — go for it, compliantly!

Hospital Indemnity

We think any agent selling MA plans should be selling hospital indemnity plans too. While Part C plans provide beneficiaries with a lot of great benefits, unfortunately, they may also leave gaps in coverage, resulting in exposure to large bills for hospital stays. Hospital indemnity plans make a solid cross-sale opportunity, since they can cover hospital-related expenses an MA plan might not cover and provide beneficiaries with a lump sum that can help them pay for deductibles, ER visits, observation stays, surgeries, medications, transportation, lodging, health screenings, and more!

Final Expense Insurance

A traditional funeral can cost up to $10,000, and many people don’t have the money available to cover this cost. This is why final expense insurance can be a nice addition to your clients’ health insurance coverage.

By fact finding during appointments, you can get to the heart of your client’s budget and their coverage wants, needs, and concerns. If you feel a final expense plan would positively add to their insurance coverage, introduce it into the conversation! You’ve established trust with your clients by offering them the best Medicare plan to meet their needs, invest in that trust further by showing them all of their coverage options, including final expense insurance!

Under-65 Insurance

For agents selling Medicare, there are some specific benefits to adding ACA plans to your portfolio — chiefly, it opens you up to an entirely new market of prospects from all ages, backgrounds, and locations! You can build your Medicare pipeline with ACA clients and, in the meantime, provide coverage for an entire family and not just Medicare-eligibles. Additionally, many carriers you’re already working with within the Medicare industry also offer marketplace plans for those who are under 65! Developing a strong relationship with clients before they age into Medicare might be one of the smartest moves an insurance agent can make.

There’s so much for you to gain, despite some MA plans becoming non-commissionable. Ritter’s here to help you stay informed, diversify your portfolio, provide sales support and educational resources, and more. Register with Ritter today and continue to be the successful agent you already are!