The 2026 Medicare Shake-Up: Non-Commissionable Plans and the Push to Reshape Enrollments

As we approach the 2026 Medicare Annual Enrollment Period (AEP), the landscape for Medicare Advantage (MA) plans is undergoing significant turbulence. Major insurers are increasingly designating certain plans as "non-commissionable," meaning agents and brokers will no longer receive commissions for enrolling new members into these plans.

This shift, already stirring controversy among agents, beneficiaries, and industry watchdogs, appears designed to influence enrollment patterns—potentially encouraging people to move away from unprofitable or high-cost plans toward others that better align with carriers' financial goals.

If you're on Medicare or advising others, these changes could directly impact your options come January 1, 2026.

What Are Non-Commissionable Plans, and Who's Implementing Them?

In simple terms, a non-commissionable Medicare Advantage plan is one where insurers stop paying commissions to independent agents for new enrollments. Renewals for existing members may still earn agents a fee (typically half the initial rate), but the lack of upfront compensation for new sales discourages agents from promoting these plans.

This isn't a blanket ban on commissions—CMS still sets maximum fair market value rates, with 2026 initial MA commissions rising to around $694 per member in many states (a 10.9% increase from 2025), and renewals to $347. However, carriers are selectively applying non-commissionable status to specific plans.

Leading Carriers Making Changes

Leading the charge are giants like UnitedHealthcare (UHC), Humana, Aetna, and Anthem:

• UnitedHealthcare has removed commissions from over 100 MA plans across more than 20 states, effective for new sales starting July 2025 (impacting 2026 coverage). This affects 219 plans with current enrollment, primarily to curb growth in underperforming markets.
• Humana announced it won't pay commissions for new members in 288 MA plans for 2026, mostly preferred provider organizations (PPOs).
• Aetna and Anthem have followed suit, notifying agents of commission cuts on select plans mid-enrollment period.
• Other carriers like Cigna, Centene, and Elevance have made similar moves, with some withdrawing from markets entirely.

These aren't isolated decisions; they're part of a broader trend where insurers are scaling back MA offerings. Recent data shows UHC, Humana, and Aetna reducing plans for 2026, with over 1 million beneficiaries potentially losing their current coverage and needing to switch.

Why Are Companies Making This Change? The Drive to "Move" Enrollments

The core motivation boils down to profitability and regulatory pressures. Insurers are grappling with rising costs from factors like the Inflation Reduction Act (IRA), which caps out-of-pocket drug expenses at $2,000 starting in 2025, shifting more financial burden to plans.

High-claim drugs (e.g., GLP-1 medications like Ozempic), fraud, and changes to CMS's STAR ratings system—which affects bonus payments—have made many plans unprofitable.

By making plans non-commissionable, carriers aim to "slow sales" on these money-losing options without fully terminating them. Agents, who rely on commissions for 50-100% of their income in this space, are less likely to pitch these plans, effectively steering new enrollees toward more profitable alternatives.

This isn't just cost-cutting; it's a strategic pivot to stabilize finances amid projected MA enrollment declines in 2026, as CMS forecasts fewer people joining due to trimmed benefits and higher scrutiny.

Regulatory Context

Regulatory context plays a big role too. CMS's April 2024 final rule for Contract Year 2026 tightens broker compensation to curb "churning"—unnecessary plan switches driven by agent incentives. It caps administrative fees, prohibits volume-based bonuses, and requires fair market value adherence, making it harder for insurers to over-incentivize sales.

In response, companies are opting for non-commissionable structures to comply while protecting margins. As one industry analyst noted, carriers have "no other levers" to control enrollment flows.

The Market Stir: Impacts on Agents, Beneficiaries, and the Industry

This shift is "stirring up the market" in profound ways:

For Agents

Commissions are a lifeline, and cuts could slash earnings by 4-50% in affected markets. Groups like the National Association of Insurance and Financial Advisors (NAIFA) have denounced these moves, arguing they limit agents' ability to provide unbiased advice and force reliance on call centers. Some agents are pivoting to other lines like life insurance or treating Medicare as a side hustle.

For Beneficiaries

Over 1 million may need to switch plans due to terminations, facing potential benefit reductions (e.g., narrower networks or higher copays). NAIFA warns this harms consumers by reducing access to personalized guidance, leading to confusion and suboptimal choices. On the plus side, average Part D premiums are dropping to $34.50/month.

Broader Market Implications

CMS rejected plan bids for the first time in 2026, signaling tighter oversight and potentially lower premiums but fewer options. Enrollment is projected to dip as insurers exit unprofitable areas, with payments to MA plans rising 5.06% overall but not enough to offset pressures. This could accelerate consolidation, with smaller carriers gaining ground in disrupted markets.

What Does This Mean for You in 2026?

If you're enrolled in an MA plan, check your Annual Notice of Change (ANOC) for updates—many will arrive by October 2025. Consider consulting a licensed agent early, as options may shrink.

This 2026 shift isn't just about commissions—it's a recalibration of the entire Medicare ecosystem amid cost pressures and regulations. Stay informed, as more details emerge during AEP.

Take Action for 2026

Don't wait until the last minute. The 2026 AEP runs from October 15 to December 7, 2025, and with these significant changes, it's crucial to start planning early.

Get Your Free 2026 Medicare Consultation