What to Do If Your Medicare Part D Plans Become Non-Commissionable

Several major Medicare Part D carriers have announced they will not pay commissions on prescription drug plans (PDP) for 2025. Without new, and even some renewal commissions, you might be asking yourself some hard questions.

We understand that agents have a heart for helping others but also need to earn a livelihood and provide for their own families. If you’re wondering what to do next and how to best serve your clients while making a living, we’re here to help you consider your options.

Here’s what you can do when you learn a Medicare Part D plan in your portfolio just became non-commissionable.

Take a Breather & Rededicate Yourself

It can be frustrating to learn your earnings structure changed dramatically and out of your control. Many agents take the time and effort to build a renewal commission base, including checking in with clients annually. With the loss of income many depend on, it’s no wonder agents are feeling lost and defeated.

We’re not downplaying the gravity of the situation, but it may be helpful to take a day or two as a breather before trying to think about what you’re going to do. Remember why you got into this business in the first place. Was it schedule flexibility so you can spend more time with your newborn? Your love for serving the Medicare-eligible population? Perhaps paying for your daughter’s tuition? Everyone has a reason, and it’s usually deeper than just “make a lot of money.”

Remember why you got into the insurance business in the first place.

When you’ve cooled off and your why is in mind, then move forward with ”What now?”

Keep Your Client’s Best Interests Top of Mind

At Ritter, we believe that doing best by your client should always be your top priority. If you do that, then everything else should fall into place — your reputation, income, business growth, etc. Don’t you want the reputation of helping a client secure the right plan no matter what?

To help ensure they find the right plan, be a likeable agent, get to know them, take the time to fact find thoroughly, explore multiple options, and discuss with them what would be the best fit for their unique circumstances. Developing rapport and a strong relationship with your clients builds loyalty and increases your chances of referrals.

What if the right plan continues to be that non-commissionable PDP plan? When you first started selling Health Plan A’s PDP, you probably liked something about it other than the fact that you got paid. Are those reasons still applicable? Then consider still offering the plan to those clients for whom it would be a good option. Yes, you’ll take a pay cut. You’ll also do what’s best for your client and increase client loyalty, retention, and referrals.

Add New Commissionable PDPs to Your PDP Portfolio

You need to make a living, too, and every dollar counts, right? That’s where portfolio health and balance come in.

This change could be a sign it’s time to expand your insurance portfolio and contract to sell new commissionable PDPs. We usually suggest having at least one PDP in your portfolio. In times like these, having two extra commissionable options can help balance your earnings.

Broaden Your Medicare Advantage Options

To further diversify your portfolio, consider offering additional Medicare Advantage Prescription Drug (MAPD) plans. With their combined health and drug coverage and appealing extras and perks, MAPD plans have grown substantially in popularity since 2007, with more than half of Medicare beneficiaries enrolled in MA plans. Research also suggests that most enrollees are happy with their plans.

Not only are MAPD plans popular, but they can also be lucrative. You’ll receive sizeable Medicare commissions for new business and renewals. Maximum commission limits are set annually but the Centers for Medicare & Medicaid Services (CMS), and many carriers (to be competitive) pay the max amount.

If you don’t sell MAPD plans, you’re leaving money on the table.

If you don’t sell MAPD plans, you’re leaving money on the table. We highly recommend offering at minimum two MA plans to your clients, one large national carrier and one smaller regional carrier.

Remember all those clients you enrolled into Health Plan A’s PDP? Consider reviewing their coverage during AEP to see if they have interest in an MAPD plan and if there’s one that would be a good fit. Maybe there’s a plan that would even be a better fit than their current coverage!

Want to get into selling Medicare Advantage plans but not sure where to start? Lay a strong base with our free eBook, The Complete Guide on How to Sell Medicare Advantage Plans!

Improve Your Cross-Selling Opportunities

Cross-selling ancillary products is a great way to not only provide useful coverage for your clients, but also supplement your income. Offering options like hospital indemnity, cancer, heart attack, and stroke, critical illness, long- and short-term care, DVH, life, annuities, and final expense can help make up for that lost PDP commission.

Remember to cross-sell ancillary products compliantly. You must have a Scope of Appointment filled out with ancillary health products checked to speak with a client about those products during an appointment. All product types not on the Scope must be presented during a different follow-up appointment. Read more in A Quick Guide to Cross-Selling Ancillary Insurance with Medicare Products.

Don’t Forget About Medicare Supplements

If you offer PDPs, you may also be selling Medicare Supplements (Med Supps) since the two naturally go together well. While you’re contracting for new PDPs and MAPD plans to give your growing portfolio the variety it needs, don’t forget to review your current Med Supp options and see if there are any new competitive plans in your area.

With so many Med Supp plan letters, choosing the right plan for your client can be tricky. We recommend being able to offer your clients more than one plan letter. If, however, you only want to offer one, we think Plan N strikes a great balance between premium affordability and comprehensive coverage.

Ask for Referrals

Embrace the power of the referral during times of transition. This type of grassroots marketing can work wonders for growing your business, especially in a year of upheaval when you’re mainly focused on client retention and don’t have a lot of energy to seek new leads.

Don’t assume, however, that your clients will talk you up to their friends and family without you asking them to do so. Handing over a stack of business cards with a simple “Please feel free to hand out or send anyone you know who needs assistance my way” can work wonders.

Learn more about asking for referrals and thanking your clients compliantly in our eBook, The Insurance Agent’s Guide to Generating Referrals!

Work with an FMO like Ritter

When the winds of change blow, it’s time to return to the basics — building a strong portfolio. This can seem like a daunting task, especially when there are other changes to navigate. That’s why FMOs like Ritter are here to help!

Not only can your sales specialist speak with you about competitive contracts for AEP, but they can also introduce you to useful resources and sales technology — like PlanEnroll — that will streamline your entire business.

Remember, with change comes opportunity. Embrace the possibilities and make a non-commissionable PDP a small speedbump in your road to business success.

At Ritter, we strive to equip you, the independent agent, with competitive contracts, useful sales technology, thorough resources, and dedicated support. Register with us, and we’ll help you navigate non-commissionable PDPs.