UnitedHealth Group is reportedly cutting broker commissions on certain Medicare Advantage plans, according to Bloomberg News, . . .

Medicare

UnitedHealthcare nixes many Medicare Advantage commissions

High Medicare Advantage costs dog market share leader UnitedHealth Group.

Last Updated

June 16, 2025 03:25 PM

 

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AI OVERVIEW: UnitedHealth Group is reportedly cutting broker commissions on certain Medicare Advantage plans, according to Bloomberg News, citing internal documents. This move is seen as a way for the insurer to manage rising costs and potentially discourage agents from selling those specific plans. The cuts are part of a broader trend where insurance companies are adjusting their compensation structures for Medicare Advantage plans, potentially impacting agent networks and senior access to personalized guidance. 

Key Details:

• Commission Cuts:

  UnitedHealth is reducing commissions paid to brokers who sell certain Medicare Advantage plans. 

Cost Management:

This action is largely a response to rising medical costs and the need to manage expenses within the Medicare Advantage program. 

Impact on Agents:

The cuts may discourage agents from selling these specific plans and could affect their income, particularly for smaller brokers who rely heavily on Medicare Advantage commissions. 

Broader Trend:

This is not an isolated incident, as other major insurers like Aetna and Cigna have also made similar adjustments to their Medicare Advantage commission structures. 

Impact on Seniors:

Concerns exist that these changes may limit access to personalized guidance for seniors as some agents may reduce their services or leave the Medicare Advantage market altogether, according to the National Association of Benefits and Insurance Professionals (NABIP). 

Potential Shifts:

Some seniors may be forced to switch back to traditional Medicare due to dissatisfaction with access to care or other issues within the Medicare Advantage plans. 

RELATED

UnitedHealth shares crash after surprise earnings miss, cuts to forecast

By Sriparna Roy and Bhanvi Satija

April 17, 202510:19 AM PDT Updated 2 months ago

• UnitedHealth shares fall over 20%, set for biggest fall in over 26 years
• UnitedHealth lower outlook miss due to higher medical costs
• Medicare Advantage demand exceeds UnitedHealth's expectations
• Forecast cut surprises investors, triggering sector-wide selloff

April 17 (Reuters) - UnitedHealth Group

, opens new tabsurprised investors with what its CEO said was an "unusual and unacceptable" quarterly earnings miss, and it lowered its outlook for the full year due to higher-than-expected medical costs, sparking a more than 20% selloff in shares that reverberated across the sector.

 

The company's first earnings miss since 2008 and accompanying bleak forecast sent investors to the exits, as they were hoping the U.S. insurer would maintain its profit outlook on expectations that demand for medical services would be similar to 2024. 

• UnitedHealth has historically provided a conservative forecast, at least two investors said.