Court Stays Health Agency Rule on Medicare Agent, Broker Payment

A federal judge in Texas has put on hold a federal health rule that prohibits Medicare managed care plans from paying insurance agents and brokers to steer prospective enrollees into certain coverage options.

A nonprofit coalition of health insurance leaders and a field marketing organization have shown a likelihood of success in challenging the Department of Health and Human Services rule regarding Fixed Fee and Contract-Terms Restrictions, Judge Reed C. O’Connor of the US District Court for the Northern District of Texas ruled on Wednesday, granting the plaintiffs’ motion to stay the rule.

The order stems from separate lawsuits filed ...