The largest Medicare Part D (prescription drug) carrier recently announced its intent to eliminate independent agent commissions associated with Medicare Part D sales and renewals in 2025. These plans will also remove agents as the “agent of record” when they assist clients with the enrollment process.

This decision jeopardizes seniors’ access to the expert guidance provided by independent Medicare insurance agents, who play a crucial role both in helping consumers to find appropriate coverage and in servicing that coverage once the enrollment period ends. Medicare Part D plans are notoriously complex, and carriers’ decisions to exclude independent agents from the Medicare enrollment process will create consumer confusion and negatively affect Medicare consumers and health insurance agents.

Licensed agents and brokers are crucial sources of expertise for consumers exploring the many Medicare plan options seeking coverage for specific prescription drugs. These professionals educate consumers on the mechanics of Medicare, both broadly and in conjunction with other potential coverage options. Health insurance agents also often find themselves researching prescription formularies to recommend the most appropriate health and drug plans.

Such plans will strip seniors of industry experts, their most valuable asset in navigating their Part D options. Excluding independent agents from the Part D purchasing process will also harm agents, who invest significant time in familiarizing themselves with the ever-changing federal health insurance landscape for the purpose of protecting their clients.  

PIA will continue to advocate for comprehensive consumer access to Medicare Part D information and compensation for the independent agents who provide it. We will also continue to collaborate with the Centers for Medicare & Medicaid Services (CMS) and industry partners to develop solutions that enhance, rather than diminish, consumer access to vital information.