SelectQuote continues to be pleased with the Medicare plan market, and the insurance coverage company is hoping for sturdy gross sales within the upcoming annual enrollment interval.
However one of many large Medicare plan issuers it represents has modified its fee fee schedule, and that has pressured the corporate to regulate its Medicare plan gross sales technique for the upcoming annual enrollment interval, firm executives informed securities analysts Friday.
The brand new fee construction “resulted in a short lived capital constraint, which prevented us from hiring a bigger agent class,” Ryan Clement, SelectQuote’s chief monetary officer, informed the analysts throughout a convention name.
The reduce within the variety of Medicare brokers will in all probability result in a ten% to fifteen% drop in Medicare plan gross sales this fall, Clement mentioned.
He famous that the issuer’s general fee fee charge continues to be engaging.
What it means: Clement’s feedback add to the proof that the upcoming annual enrollment interval could possibly be difficult due to components similar to adjustments in federal Medicare plan help ranges, Medicare plan advertising and marketing guidelines and Medicare Half D prescription drug plan profit design necessities.
The annual enrollment interval for Medicare Benefit plans and Medicare prescription drug plans for 2025 is ready to start out Oct. 15 and run by way of Dec. 7.