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Bill would require equal broker commissions during guaranteed-issue periods for Medicare supplement plans
Summary
Senate Bill 956 would require insurers to pay the same broker commissions during guaranteed-issue periods created by Maryland's 'birthday rule' as they pay during the open-enrollment period; sponsors said commission cuts have reduced broker assistance for older beneficiaries seeking to switch plans.
Senate Bill 956 was presented as a narrowly targeted measure to require carriers to pay the same broker commission during guaranteed-issue periods (the birthday rule) as during initial open enrollment for Medicare supplement insurance.
Sen. West said the bill responds to a problem in the Medicare-supplement market: when beneficiaries who originally obtained Medigap coverage later seek to switch carriers under the birthday rule, carriers sometimes reduce broker commissions so much that brokers cannot afford to assist applicants. West told the committee that Medicare supplement coverage fills critical gaps in Parts A and B, and that guaranteed issue during the birthday rule was intended to help older beneficiaries change plans when appropriate.
Bryson Popham, representing industry stakeholders, testified in support and said the 2023 birthday-rule changes improved access but that broker compensation reductions have limited beneficiaries' ability to obtain assistance when switching. Sponsors said the bill simply requires carriers to pay the same commission during the guaranteed-issue birthday window as in open enrollment, which supporters said would restore broker participation without creating a fiscal note or industry opposition.
The committee concluded the hearing after sponsor and industry-support testimony; no committee vote was taken in the hearing.
