CMS Releases FAQs on Individual-Market Broker Compensation
CMS released a new FAQ document clarifying that a health insurance issuer cannot treat commissions on enrollments during a SEP differently than commissions on enrollments during the OEP.
Published: 06.08.2022
On Tuesday, June 7th, CMS released a new FAQ document clarifying that a health insurance issuer cannot treat commissions on enrollments during a Special Enrollment Period (SEP) differently than commissions on enrollments during the Open Enrollment Period (OEP).As brokers who help enroll consumers in the individual market are aware, carriers can currently choose to offer lower commissions or choose not to offer commissions at all for enrollments made during an SEP during the same benefit year as the OEP.
According to this new FAQ document, arrangements that pay reduced or no commissions, and other forms of compensation to agents and brokers who assist consumers with individual market coverage are in violation of the ACA’s guaranteed availability provisions. The document dictates that such arrangements violate the guaranteed availability provisions because reducing or eliminating commissions and other compensation discourages agents and brokers from marketing to and enrolling individuals who are eligible for an SEP.
If you have any questions, please contact your Savoy Sales Team.
