Sachin Jain/LinkedIn
Jun 15, 2025, 11:26
Sachin H. Jain: Medicare Advantage Plans Invest Billions Annually in Broker Commissions
Sachin H. Jain, President and CEO of SCAN Group and Health Plan, shared a post on LinkedIn:
“Medicare Advantage plans (and by extension, the federal government) invest billions annually in broker commissions – ranging from $428/enrolee in Puerto Rico to $780/enrolee in California for new enrollments, with renewal payments up to ~$390 per member per year.
But these payments are untethered to plan quality or outcomes. As a result, brokers and agents may sometimes gravitate toward well-marketed plans that make for an easy sale rather than those delivering real value – at significant cost to taxpayers and patients.
What if star ratings were made even more meaningful by tying maximum broker commissions to star ratings? I explore this idea in a new Health Affairs forefront piece.
I welcome your thoughts – particularly from brokers, plan executives, and policymakers – on the feasibility of performance-tied broker models.
How might we operationalize changes to broker commission structures in a way that promotes quality, affordability, and equity, and encourages them to enroll beneficiaries into higher quality plans?”
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