Centene to end Part D broker payments

https://www.beckerspayer.com/payer/centene-ends-part-d-broker-payments.html

Centene will no longer pay commission to insurance brokers enrolling or renewing members in its Medicare Part D plans. 

In a message sent to brokers, published Aug. 25 on Pinnacle Financial Services, Centene said it will continue paying compensation to brokers enrolling members in its Wellcare Medicare Advantage plans. 

In its message, Centene said the Inflation Reduction Act has resulted in “significant changes” to Part D. 

“To continue providing access to high-quality healthcare and Part D coverage that helps families and individuals, we have made a difficult decision — effective Jan. 1, 2025 — to cease new and renewal commissions for PDP beginning with the 2025 plan year,” Centene wrote to brokers. 

In 2024, provisions of the Inflation Reduction Act that eliminate copays for Part D beneficiaries who enter the catastrophic phase of coverage took effect. In 2025, a $2,000 out-of-pocket spending cap will apply to Part D members. 

Medicare Advantage and Part D plans pay brokers compensation for new enrollments and renewals in their plans. 

Jessica Brooks-Woods, CEO of the National Association of Benefits and Insurance Professionals, said in an Aug. 27 statement the decision to cut commissions “threaten not only the livelihoods of Medicare agents but also the communities they serve and the seniors who rely on their expert guidance.” 

The association has reached out to Centene leaders, Ms. Brooks-Woods said, as the decision sets a precedent. 

“We invite the leaders to talk about how these decisions will affect Medicare beneficiaries and their families,” Ms. Brooks-Woods said. “We are asking important questions and looking at all possible options to make sure our seniors and their trusted partners are protected.” 

Centene was the fourth largest Medicare Part D plan sponsor in 2023, according to KFF. The company had 6.6 million Part D members as of June. 

The insurer will also exit six Medicare Advantage markets next year. Centene will no longer offer its Wellcare MA plans in Alabama, Massachusetts, New Hampshire, New Mexico, Rhode Island and Vermont, but will continue to offer prescription drug plans in those states.

Becker’s has reached out to Centene for comment and will update this article if more information becomes available. 

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