Health insurer Centene will not pay any commissions to brokers and agents who help people sign up for next year’s Medicare prescription drug plans.
“We have made a difficult decision — effective Jan. 1, 2025 — to cease new and renewal commissions for [Medicare Part D plans] beginning with the 2025 plan year,” Centene’s WellCare subsidiary said last Friday in an email sent to brokers, which was obtained by STAT.
The decision will save hundreds of millions of dollars for Centene, which is the largest seller of Medicare Part D drug plans with more than 6.6 million enrollees. The company caught insurance brokers off guard, many of whom think Centene’s strategy is an attempt to move those enrollees into Medicare Advantage plans, which include coverage for prescription drugs and draw more money from the federal government.
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