Use of Brokers in Medicare Advantage and Standalone Part D Plans.

OBJECTIVE

To compare the use of brokers in Medicare Advantage plans and standalone Part D plans.

STUDY SETTING AND

DESIGN

We used plan-level broker enrollment data from 2014 to 2023 to compare the rates of broker use in Medicare Advantage and standalone Part D plans.

DATA SOURCES AND ANALYTIC SAMPLE: We used broker enrollment data obtained from the Centers for Medicare and Medicaid Services through a Freedom of Information Act request and data from the Medicare Master Beneficiary Summary File. Our sample included 47,862 plan-years from 2014 to 2023.

PRINCIPAL FINDINGS: In 2023, new enrollees in Medicare Advantage plans were more likely to be enrolled by a broker than those in standalone part D plans (35.6% compared to 27.1%). These results were generally consistent over time, within insurers, and across states.

CONCLUSIONS

Broker use is more common in Medicare Advantage plans than in standalone Part D plans. Given that brokers are often paid more to enroll beneficiaries in Medicare Advantage plans than in standalone Part D plans, these results suggest that brokers may play a key role in driving Medicare Advantage enrollment growth.