Advocacy in action blog

The Medicare system, including various Medicare Advantage and Medicare Part D plans, can be very confusing to beneficiaries and older Americans exploring their healthcare options. The guidance of experienced, licensed professionals is often indispensable. NAIFA President Doug Massey recently sent a letter to the chairmen and ranking members of the House Ways and Means Committee, Subcommittee on Health, and Subcommittee on Oversight outlining the role of the agent and suggesting ways Congress can strengthen consumer protections while preserving access to professional guidance. 

The National Association of Insurance and Financial Advisors (NAIFA) strongly objects to United Healthcare’s decision to cut agent commissions on more than 100 Medicare Advantage plans across over 20 states. This action undermines the value of professional guidance at a time when seniors need it most.

NAIFA CEO Kevin Mayeux, CAE, released the following statement in response to the Centers for Medicare & Medicaid Services (CMS) press release announcing an aggressive strategy to enhance and accelerate Medicare Advantage audits:

The Centers for Medicare & Medicaid Services (CMS) has withdrawn a memo issued during the previous administration that would have restricted how Medicare beneficiaries may enroll using a Special Election Period (SEP) when affected by a Government Entity-Declared Disaster or Other Emergency. Under the new direction, the process will not change and individuals will not be forced to enroll by calling Medicare directly.

Medicare Advantage and Medicare Part D consumers rely on agents and brokers to help them understand and make informed decisions about these often complex products. Yet, ongoing instability in the marketplace and uncertainty about compensation for agents and brokers are making it difficult for professionals to give critical guidance to their clients.

NAIFA has joined NABIP, HAFA, the Big I, and the CIAB in asking Congress to address these challenges.

NAIFA CEO Kevin Mayeux sat down with Senior Director for Government Relations Michael Hedge to discuss some ways the incoming administration could change the regulatory landscape surrounding Medicare and how this could present opportunities for NAIFA to get involved. Insurance professionals are crucial to helping consumers navigate the complicated Medicare plans and NAIFA is dedicated to keeping agents involved and ensuring they are properly compensated.

NAIFA tells CMS that compensation cuts may ‘run afoul’ of existing federal regulations

Here we go again! Two more insurance companies, Aetna and Anthem, have informed agents that they will no longer pay commissions on new enrollments to some Medicare Advantage plans. These announcements follow similar ones by insurers earlier this year. The most recent decisions are particularly jarring because they come in the middle of the Medicare Annual Enrollment Period, when many agents are deep into the planning process with clients.

While MarketWatch columnist Brett Arends raises legitimate concerns about the complexities surrounding Medicare enrollment and the insurance brokers who assist beneficiaries (“The Medicare scandal hiding in plain sight,” Oct. 16), he unfairly paints a broad picture of financial professionals as profit-driven actors without considering the critical role brokers play helping consumers navigate the Medicare Advantage marketplace, which now accounts for more than half of all eligible Medicare beneficiaries. Agents and brokers educate consumers on how Medicare works, both broadly and in conjunction with other products such as Part D prescription drug plans, to simplify a complex decision-making process.

NAIFA has submitted a letter by NAIFA CEO Kevin Mayeux, CAE, to the Centers for Medicare and Medicaid Services regarding a decision by certain health insurance companies to discontinue Medicare prescription drug (Part D) compensation for health insurance agents. The changes will have a detrimental impact on American consumers who will potentially lose access to the personalized guidance that agents provide. Agents also will be restricted from receiving compensation for both new business and renewals when assisting clients with prescription drug plan enrollment.

In the letter, Mayeux said Medicare Part D plans “are sophisticated products that can be difficult for many Medicare beneficiaries to fully understand. NAIFA members spend a considerable amount of time each year, especially during the Annual Enrollment Period, matching beneficiaries to the prescription drug plan that best fits their specific needs.” Mayeux also makes the following points:

• Because Medicare can be much more complex than commercial insurance, many consumers need assistance throughout the year as they move through the various phases of coverage, cost determinations, and new prescriptions, all of which are services that agents provide on a continual basis.
• Eliminating agent compensation for these plans creates a risky precedent that may lead to consumers being left without personalized assistance as the agent cannot help with any issues that may arise. 
• Without professional agent assistance, consumers will be confused and left to contact calls centers unfamiliar with their unique situations. Frustrated consumers are more likely to submit their complaints and concerns directly to Medicare, placing added stress on CMS’s ability to deal with calls and inquiries in a timely fashion.  

Mayeux added that NAIFA plans to continue the conversation with the Centers for Medicare and Medicaid Services to communicate the impact this decision will have on protecting our most vulnerable citizens.