HHS Curbs on Medicare Agent, Broker Payments Targeted by Lawsuit

May 15, 2024, 12:00 AM UTC

A nonprofit coalition of health insurance leaders and a field marketing organization filed suit in a federal court in Texas, claiming the Department of Health and Human Services overstepped its legal authority by finalizing a rule that prohibits Medicare managed care plans from paying insurance agents and brokers to steer prospective enrollees into certain coverage options.

Published in the Federal Register in April, the Contract Year (CY) 2025 Medicare Advantage and Part D final rule (RINs 0938-AV24 and 0938-AU96) includes provisions designed to strengthen enrollee protections to ensure Medicare Advantage and Part D plans meet the needs of beneficiaries.

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