CHA recently submitted comments drafted jointly with various advocacy organizations on the Center for Medicare and Medicaid Services’ (CMS) proposed rules. The comments reveal how proposed compensation rules actually encourage unsuitable Medicare Advantage enrollments. This is because, under the current rules, commissions are nearly double for enrolling beneficiaries new to Medicare Advantage versus commissions for people staying in their current plans or switching to a similar MA plan. The rules encourage agents to focus enrollment efforts on people new to Medicare, or those in Original fee-for-service Medicare who have a Medicare supplement plan Medigap, Medi-Cal, or employer or retirement coverage. This poses a problem because it is precisely these beneficiaries—those who are accustomed to the wide provider access, protection against catastrophic expenses and predictable monthly expenses of a Medigap supplemental plan, who may have all Medicare cost-sharing and additional benefits paid by Medicaid, or who stand to lose supplemental coverage from a former employer —for whom a Medicare Advantage plan is often unsuitable.
The comments include several recommended changes to these rules and agent compensation structures.
View full comments.