Commissioner asks health insurers to keep broker commissions on Medicare products

OLYMPIA, Wash. — People shopping for medical and prescription drug plans during Medicare Open Enrollment often need as much help as they can get. Washington state Insurance Commissioner Patty Kuderer on Friday urged health insurance companies not to take one source of help for those shoppers off the table.

Kuderer sent letters to two health insurers asking them to continue paying commissions to insurance producers, brokers, and agents who help seniors and people with disabilities select Medicare plans during open enrollment.

“Discontinuing commissions on any insurance products disincentivizes producers from marketing these products to those who need them and risks driving sales towards products that insurers financially prefer,” Kuderer wrote. “These practices are especially concerning when the insurer has appointed independent agents, has historically paid commissions for these same products, included the commissions in their rate development, or did not provide advanced notice that the plans would be ‘zero commission only.’”

Kuderer has received numerous messages from consumers in Washington state urging her to take action on the matter. Two companies, Humana and UnitedHealthcare, have informed producers that they will no longer be paying commissions on certain Medicare plans.

• Letter to Humana (PDF 203.85KB)
• Letter to UnitedHealthcare (PDF 216.76KB)

“(Producers) may spend hours with an individual, pointing out key questions to consider and searching provider directories and prescription drug plan formularies to ensure that seniors and people with disabilities can continue to see their trusted health care providers and afford their medications,” she wrote. “All producers have an ethical and legal duty to put the best interest of Medicare beneficiaries first and to help them find and enroll in the plan that best meets their needs.”

Eliminating commissions on certain plans, she added, erodes the essential role that licensed independent producers play in helping people navigate their increasingly complex Medicare health plan choices.

“All insurers and producers operating in Washington state that offer insurance products to people eligible for Medicare should act in good faith. Manipulating the Medicare Advantage or Medicare PDP market in a manner that harms Washingtonians eligible for Medicare is unethical,” Kuderer wrote. “I’m asking you to stop this harmful practice and refocus your priority to provide the best prescription drug coverage and provider access, while addressing overall costs and affordability.”

State law does not allow the insurance commissioner to prohibit the practice, but Kuderer wanted to bring attention to how it harms consumers and the overall insurance market.

Medicare Open Enrollment runs through December 7, 2025. Changes made during open enrollment take effect on January 1, 2026.