Testimony to detail deceptive MA marketing practices and add-on broker fees, timed with launch of annual open enrollment.
Washington, D.C. (October 12, 2023) – The Alliance of Community Health Plans (ACHP) is pleased to announce Krista Hoglund, CEO of Security Health Plan in Marshfield, WI, will testify before the Senate Committee on Finance on Wednesday, October 18. The hearing, “Medicare Advantage Annual Enrollment: Cracking Down on Deceptive Practices and Improving Senior Experiences,” will give Ms. Hoglund an opportunity to share the impact of unchecked broker compensation fees in the Medicare Advantage program on the ability of seniors to select a MA plan best-suited for their needs.
“As the CEO of a highly rated, provider-aligned health plan serving rural populations in Wisconsin, Krista is an ideal voice to speak about the need to revamp broker compensation fees in the Medicare Advantage program,” said Ceci Connolly, President and CEO of ACHP. “We are grateful to Senators Wyden and Crapo for their leadership on this issue and for scheduling this hearing. While brokers play an important role in helping seniors understand their options in MA, too often they are financially incentivized to steer those seniors to plans that offer the highest fees, rather than to the plan that’s best for their health needs. Krista’s experience at Security Health Plan offers a unique perspective, and I’m thrilled the Senate Finance Committee will hear that.”
In 2009 the Centers for Medicare and Medicaid Services (CMS) established a commission cap of $611 that brokers may earn for each new MA beneficiary enrolled in a MA plan. However, many brokers are now collecting as much as $1,300 – more than twice the CMS limit – via administrative fees and other incentives for enrollees they sign up. ACHP has led the effort to revamp broker payments and recently sent letters to CMS and to Congressional leadership urging the regulation of total compensation paid to brokers in the Contract Year 2025 Part C and D Policy and Technical Changes proposed rule.
“I am looking forward to speaking with the Senate Finance Committee on behalf of Security Health Plan and our enrollees that rely on Medicare Advantage for their health coverage,” remarked Krista Hoglund, CEO of Security Health Plan. “It is vitally important to ensure that seniors have the right information as they go through the open enrollment process, and that the playing field is not unfairly tilted to the advantage of a few companies.”
The hearing, “Medicare Advantage Annual Enrollment: Cracking Down on Deceptive Practices and Improving Senior Experiences,” will be held at 10am on Wednesday, October 18, in Room 216 in the Senate Hart Office Building.
The Alliance of Community Health Plans (ACHP) represents the nation’s top-performing nonprofit health companies, which serve tens of millions of Americans across nearly 40 states and D.C. ACHP member plans collaborate with providers on high-quality coverage and care — leading the industry in practical reforms, including MA for Tomorrow, our vision for the future of Medicare Advantage.
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