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Centene (NYSE:CNC) has determined to cease paying commissions to brokers and brokers who assist folks get hold of the corporate’s Medicare prescription drug plans beginning subsequent yr, Stat News reported Tuesday.
Citing an e-mail despatched by Centene (CNC) subsidiary WellCare to brokers, the publication mentioned that modifications might be relevant for the 2025 plan yr.
“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,” WellCare mentioned.
Being the most important Part D participant, the transfer is predicted to save lots of a whole lot of thousands and thousands of {dollars} for Centene (CNC).
Many brokers imagine the brand new technique goals to drive members in the direction of Medicare Advantage plans, which additionally supply Part D protection and draw greater funding from the federal authorities.
Centene (CNC) reported 6.6M enrollees in Medicare Part D plans as of June 30, a ~47% YoY improve, whereas its Medicare membership, which incorporates enrollees in its Medicare Advantage plans, indicated an ~11% YoY drop to ~1.1M.
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Source: Seekingalpha