Agent groups condemn United Healthcare eliminating commissions

Professional associations representing the agent community have come out against United Healthcare's recent decision to eliminate agent commissions across more than 100 Medicare Advantage plans in more 20 states.

The National Association of Benefits and Insurance Professionals said this move limits access to trusted, licensed guidance for Medicare beneficiaries and threatens the role of independent agents who serve as vital advocates for older Americans.

"This decision by United Healthcare is as shortsighted as it is harmful,” said NABIP CEO Jessica Brooks-Woods. “At a time when seniors are grappling with rising costs, changing formularies, and overwhelming plan options, United Healthcare is cutting off the very people best equipped to help — licensed agents who know their communities, understand their
clients, and act in their best interest. Let’s be clear: this is not about reducing administrative burdens or modernizing enrollment. This is about prioritizing shareholders over seniors.”

Independent agents provide year-round service, helping Medicare beneficiaries enroll, manage claims, and adjust coverage as their needs change. Reducing renewal commissions sends a clear signal that long-term service and client relationships are no longer a priority. This decision risks leaving many seniors confused, unsupported, and vulnerable to making poor coverage choices.

'Undermining the Medicare support system'

“Slashing commissions on renewals punishes agents for doing the right thing—staying with their clients after the sale,” added Brooks-Woods. “These professionals aren’t just selling policies; they’re guiding people through claims, care decisions, and life changes. Cutting them out undermines the entire Medicare support system.”

NABIP has met directly with the congressional committees that oversee the Medicare program and with the Centers for Medicare & Medicaid Services to elevate urgent concerns about the impact of commission cuts on Medicare beneficiaries. These meetings reflect the seriousness of the threat to Medicare access and the urgency for action.

Alongside these efforts, NABIP—joined by the National Association of Insurance and Financial Advisors, Health Agents for America, The Council of Insurance Agents and Brokers and the Independent Insurance Agents & Brokers of America —submitted a joint comment letter to U.S. House and Senate leadership urging immediate intervention to address the growing instability in the Medicare Advantage market. NABIP has collected more than 14,000 testimonials from Medicare beneficiaries affected by these changes, with several of their stories included in the letter to illustrate the real-world consequences these policy decisions are having on seniors’ ability to access care and make informed choices.

To prevent further disruption during the critical Annual Enrollment Period, NABIP strongly urges CMS to prohibit plan sponsors from altering commission structures after October 1. This deadline, already referenced in CMS proposals for pharmacy network finalizations, is essential to provide agents and consumers with stability and predictability.

Allowing last-minute or retroactive compensation changes jeopardizes the trust built between agents and the Medicare beneficiaries they serve and risks shifting millions to already overwhelmed government assistance lines.

NABIP called on regulators and lawmakers to examine the consequences of United Healthcare’s decision and take immediate steps to protect beneficiary access, preserve market competition, and ensure the long-term integrity of the Medicare program.

NAIFA speaks out

NAIFA also condemned United Healthcare's move. In a news release, NAIFA CEO Kevin Mayeux said the decision "undermines the value of professional guidance at a time when seniors need it most."

“Licensed Medicare advisors are vital,” said NAIFA CEO Kevin Mayeux, CAE. “They serve as year-round advocates who help clients compare plan options, navigate changing benefits, address denials, and adjust coverage to meet evolving needs. Stripping away their compensation is not only disruptive but deeply irresponsible. It jeopardizes seniors’ ability to make informed decisions in a system that is already complex and confusing.”

Mayeux said this decision also ignores evidence that alternative sources of guidance are falling short. A recent study published in JAMA Network Open evaluated the federal State Health Insurance Assistance Programs designed to help Medicare beneficiaries. The study found that the assistance provided was often inaccurate, incomplete, or confusing. In too many cases, SHIP volunteers offered incorrect plan information or failed to provide meaningful answers, leaving beneficiaries more frustrated than helped.

In contrast, licensed agents are held to high standards of training and accountability. They know their clients, understand product differences, and tailor recommendations to individual circumstances, Mayeux said.

“This is not about administrative modernization. It’s about marginalizing the very professionals best equipped to support Medicare beneficiaries. It’s about cutting costs on the backs of seniors and the advisors who serve them.

“NAIFA, alongside our industry partners, has raised this issue with Congress and CMS. We urge regulators to prohibit changes to commission structures to ensure stability for agents and beneficiaries during the Annual Enrollment Period. Medicare Advantage cannot function without a well-supported advisory workforce.

“We call on UnitedHealthcare to reverse this short-sighted decision. And we call on policymakers to act decisively to preserve access, uphold consumer protection, and safeguard the long-term integrity of the Medicare program.”

HAFA goes to Washington

HAFA is taking their concerns to decision-makers in the nation's capital.

The organization's leadership plans to visit Washington soon to discuss a number of HAFA's priorities with lawmakers, according to a recent social media post. Those priorities include:

Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected].