Another Medicare carrier stops paying commissions

The Medicare open enrollment period already was off to a rocky start and it just became a bit rockier.

Medical Mutual became the latest carrier to announce it is suspending agent commissions.

In a notice sent out to its agents, Medical Mutual said will suspend commissions on new sales for Medical Mutual Medicare Advantage products and suspend compensation for the completion of new member assessments. This was effective at 11:59 p.m. on Sunday, Nov. 17. The carrier will continue to pay renewal commissions on previously written policies and honor any commissions earned for 2025 business written prior to Nov. 18, 2024. There is no change in commission structure to Paramount Elite Medicare Advantage plans.

“The dynamics of the marketplace have boosted our membership beyond our expectations,” Medical Mutual said in a notice to its agents.

“Being a mutual company, our first responsibility is to our members. We pride ourselves on having excellent service and support. It’s extremely important for us to maintain these expected service levels and doing so takes people. As our membership swells, so does the need for customer service representatives, quality nurses and care navigators, as well as other resources. It takes time to carefully recruit and train the right people to join the Medical Mutual family.”

Medical Mutual did not respond to an InsuranceNewsNet request for comment.

The carrier joins the list of insurers who are eliminating commissions on Medicare plans.

Carriers who announced they will not pay agent commissions on certain plans include:

• Aetna, on 24 of its Medicare Advantage plans.
• UnitedHealthcare, on 106 of its Medicare Advantage plans.
• Cigna, on its prescription drug plans
• Wellcare, on its prescription drug plans
• Humana, on 54 of its Medicare Advantage plans.
• Wellpoint/Elevance/Anthem, on new sales of some of its plans submitted after Nov. 1.

Medicare open enrollment for 2025 began Oct. 15 and runs through Dec. 7.

© Entire contents copyright 2024 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

Susan Rupe is editor in chief, magazine, 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 susan.rupe@innfeedback.com.