NAIFA calls for national action on unfair trade practices in Medicare markets

National Association of Insurance and Financial Advisors President Doug Massey has called on state insurance regulators to take decisive action to protect consumers and insurance professionals from unfair trade practices in the Medicare marketplace. In a letter submitted to the National Association of Insurance Commissioners, Massey praised Idaho Department of Insurance Director Dean Cameron for his leadership in issuing Bulletin No. 25-06, which condemns carrier practices that restrict consumer access and manipulate compensation structures for agents serving Medicare beneficiaries.

The Idaho bulletin identifies practices such as removing enrollment applications from carrier websites, discouraging agents from selling specific products, altering compensation mid-year, and implementing zero-commission structures, all deemed unfair trade practices under Idaho law. These actions, the Department warned, can distort the insurance market, limit consumer choice, and unfairly penalize producers who are essential to helping seniors navigate complex Medicare options.

In his letter, Massey said that the problems outlined in Idaho’s bulletin are not isolated to one state. NAIFA members across the country have reported similar tactics in Medicare Advantage, Part D and Medicare Supplement markets. He urged regulators in every state to examine their unfair trade practice statutes and enforcement mechanisms to ensure such conduct is addressed promptly: “When carriers file products with specific rate structures that include producer compensation, then unilaterally withdraw that support mid-year, they undermine market stability and harm consumers who lose access to professional guidance, and create an uneven competitive playing field,” Massey wrote.

Massey encouraged state insurance departments to follow Idaho’s example and reaffirm their commitment to protecting consumers and maintaining fair competition: “Insurance markets function properly only when carriers honor their commitments to the marketplace,” he said.