The Medicare landscape is shifting yet again, and the big change for 2025 is the introduction of non-commissionable Medicare Advantage (MA) plans. For agents, this update might feel like a curveball, especially during the busy Annual Enrollment Period (AEP). But with change comes opportunity—this is a chance to adapt, refine your strategies, and grow your business in new ways. Let’s break down what’s happening, why it’s happening, and how agents can navigate these changes successfully.
Beginning January 1, 2025, certain Medicare Advantage (MA) plans offered by major carriers will no longer pay commissions for new enrollments. The carriers that have announced these changes include Aetna, Cigna Healthcare, Elevance Health (Anthem Blue Cross and Blue Shield), and Medical Mutual. These changes are primarily in place to address rising costs for insurers as they manage the impact of recent regulatory changes, such as those in the Inflation Reduction Act.
The rollout of these changes began during the 2024 Annual Enrollment Period (AEP), with specific dates for different carriers:
It’s important to note that these changes only affect new enrollments. Agents will continue to receive commissions for renewals of existing clients who are already enrolled in these plans. Since the changes vary by carrier and market, it’s essential to stay informed by communicating with your marketing organization or the carrier representatives to understand which plans are affected and in which markets.
The answer lies in the economics of Medicare and the evolving policy landscape. Carriers are making these changes to maintain financial stability, and much of it ties back to provisions in the Inflation Reduction Act (IRA). The IRA introduced several cost-saving measures for Medicare beneficiaries, including:
While these changes are beneficial for beneficiaries, they also increase costs for carriers. Adjusting commission structures for certain MA plans is a way for insurers to stay financially sustainable while continuing to offer competitive products in the market.
Timing is everything, and for carriers, AEP is a logical time to make these adjustments. With AEP being the busiest period for Medicare Advantage enrollments, these changes allow carriers to prepare for the increased utilization of benefits by beneficiaries. Post-pandemic, many beneficiaries are catching up on deferred care, leading to rising costs for insurers.
Although the timing might feel inconvenient for agents, it’s a reflection of the changing dynamics in the Medicare market—something agents have navigated successfully before.
If you’re an agent impacted by non-commissionable plans, the first rule is simple: prioritize your clients’ needs. Offering non-commissionable plans when they’re the best fit for your clients demonstrates your commitment to their well-being. This builds trust and strengthens relationships, which can lead to loyalty and referrals—key drivers of long-term success.
That said, there are also strategies you can use to offset the immediate income hit from non-commissionable plans:
2. Leverage Cross-Selling
If your clients trust you with their Medicare decisions, they’re likely to trust you with other aspects of their insurance needs. Use this opportunity to identify additional coverage gaps and recommend solutions. A single satisfied client can lead to multiple policy sales.
3. Focus on Retention and Referrals
Satisfied clients are your best advertisement. Even if a plan doesn’t generate immediate commissions, delivering exceptional service creates loyalty—and loyal clients often send friends and family your way. Word-of-mouth referrals are invaluable and can make a significant difference to your bottom line.
The introduction of non-commissionable Medicare Advantage plans may feel like a challenge, but it’s also an opportunity to refine your approach and grow your business. Here’s what you need to remember:
The Medicare market is always evolving, and the most successful agents are those who can adapt to change. Non-commissionable plans may shift how you earn commissions in the short term, but they also open the door to building deeper client relationships and exploring new opportunities.
By staying focused on your clients’ needs, expanding your product offerings, and embracing innovation, you can turn this challenge into a stepping stone for growth. Remember: change is inevitable, but your ability to adapt and thrive is what sets you apart.