Amanda Brewton had a great view of the latest Medicare plan annual enrollment period, which ended Dec. 7.
Brewton is the owner of Medicare Answers Now, a Cleveland-based field marketing organization that supports Medicare plan agents in about 40 states.
She also serves on the National Association of Benefits and Insurance Professionals' Medicare Advisory Group, a team that communicates with members of Congress, lawmakers' aides and officials at the Centers for Medicare and Medicaid Services.
This year, CMS changed the rules for how it pays Medicare Advantage plan issuers. Insurers responded by eliminating some plans and zeroing out sales commissions for others after the annual enrollment period was already underway. When an insurer zeroes out the commissions, even an agent who's willing to an offer a plan without collecting a commission may have trouble offering the plan.
Starting in 2025, the Inflation Reduction Act will limit Medicare drug plan members' spending on covered drugs at $2,000 per year. Insurers coped with the cap on patients' out-of-pocket costs by cutting benefits; eliminating plans; raising prices; and reducing the size of plan "formularies," or covered drug lists.
The drug benefits changes affected by both stand-alone Medicare Part D prescription drug plans and Medicare Advantage prescription drug plans, or MAPD plans, that combine health coverage with drug coverage.
Medicare supplement insurance policies have a separate enrollment period that occurs around the time a consumer turns 65. But rising claim costs pushed up Med supp costs, too.
CMS has not yet released 2025 coverage enrollment totals. EHealth, a big web broker, reported that the upheaval ended up increasing its sales volume and profit margins. Brewton saw how the turmoil affected the producers affiliated with her own firm.
Brewton answered questions about the upheaval in Medicare plan distribution via email. The questions and answers have been edited.
THINKADVISOR: How was this year's annual enrollment period different?
AMANDA BREWTON: This year was way more hectic and chaotic than years past. So many beneficiaries looking and needing help and not enough time to do it.
Part D was always going to be an issue because of the changes with the Inflation Reduction Act. Between the cost of the plans going up, and changes on the formularies, all Medicare-eligibles should have reviewed their plans.
Add to that, many MAPD and Part D plans were removed off of quoting and enrollment tools due to them being non-commissionable, it made for super long hold times well over an hour with some carriers and other carriers having issues with their websites.
You also had 2 million affected by their plans no longer being offered and even more disruptions because hospital systems decided to take to the media as a contract negotiation tactic.
