Washington, D.C. (April 4, 2024) – The Alliance of Community Health Plans (ACHP) applauds CMS for curtailing excessive payments to MA brokers in a rule announced today. By eliminating questionable “add-on” fees, the Administration will save the Medicare Trust Fund billions of dollars and inject fairer competition into the Medicare Advantage market. Prior to this new rule, brokers were paid $1,300 or more – double the cap set by CMS – for every senior they enrolled in a MA plan. The practical implications of these unchecked fees meant beneficiaries were directed to those plans that paid brokers the most instead of MA plans best suited to meet their unique health needs.
Working with experts at its member plans, ACHP developed its visionary MA for Tomorrow, a set of policy proposals geared toward taking MA from ‘good’ to ‘great.’ Capping broker compensation and leveling the competitive playing field is a leading recommendation.
“We are thrilled CMS embraced our proposal to cap total broker payment,” said Ceci Connolly, ACHP President and CEO. “This commonsense policy change eliminates those perverse financial incentives and levels the playing field for health competition.”
By recognizing the critical role brokers, particularly local brokers, play in advising seniors during the enrollment process, beneficiaries can now expect transparent, unbiased information from brokers supporting their selection of the high-quality, affordable coverage and care they deserve.
With more than half of retirees choosing MA over traditional fee-for-service Medicare for their health coverage, it is clear this innovative public-private partnership is the choice of America’s seniors. ACHP appreciates the bipartisan support it has received on Capitol Hill, including Senate Finance Committee leadership, to rein in excessive broker payments.
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About ACHP
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.
ACHP is the voice of a unique payer-provider partnership model advancing proven solutions that deliver better value for patients, employers and taxpayers. Contact us for case studies and data about member innovations and results.
