Centene is joining the ranks of Medicare Advantage insurers cutting pay to marketers that direct new customers their way.
The insurer notified brokers and agents on Monday that it will no longer compensate them for enrolling new members into eight Medicare Advantage plans sold in New York state and Washington state beginning Wednesday, said Betsy Seals, co-founder and CEO of Rebellis Group, a Medicare consulting firm.
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“Given the popularity of these plan offerings, this decision was made to maintain high levels of service for members who have already been enrolled in these products,” Centene wrote in a notice to marketers. The company previously suspended commissions for all standalone Part D prescription drug plan sign-ups. The Medicare annual enrollment period ends Dec. 7.
CVS Health subsidiary Aetna, Cigna and Elevance Health likewise have curtailed or halted commissions for some Medicare plans.
Centene is striving to boost its Medicare business after losing big Star Ratings program bonuses and failing to predict the medical expenses its 1 million Medicare Advantage members would incur this year. Last month, the company sued the Centers for Medicare and Medicaid Services challenging its star ratings.
Centene did not immediately respond to an interview request.
