The investigation reveals that in 2021, over six million seniors purchased their Medigap plans from companies that offer agents special, secretive rewards for steering customers to targeted plans. Seniors can pay a high price for these agent bonuses: signing up for the wrong plan could cost hundreds or thousands of dollars more each year, either in higher premiums, higher out-of-pocket medical costs, or both.
...luxury vacations and other perks to agents are pervasive in the Medigap market.
...Bonuses and perks can create incentives for agents and brokers to steer seniors to the wrong products.
...Bonus perks for agents and brokers are legal and minimally regulated
...However, Medigap plans are an expensive additional cost. Approximately 40 percent of Medigap enrollees had annual incomes below $40,000...
...These undisclosed incentives are so pervasive that several insurance marketing organizations act as clearinghouses to advertise information about multiple companies’ various travel incentive programs for agents to seek bonuses with...
...Pushing seniors to purchase Medigap from one company over another can have real consequences when they enroll in plans that are unaffordable or do not meet their needs.....
...Another conflict may occur when agents push seniors to enroll in a plan from the company that best suits their own personal interest....
https://www.warren.senate.gov/imo/media/doc/FINAL Medigap Sales Report1.pdf
...luxury vacations and other perks to agents are pervasive in the Medigap market.
...Bonuses and perks can create incentives for agents and brokers to steer seniors to the wrong products.
...Bonus perks for agents and brokers are legal and minimally regulated
...However, Medigap plans are an expensive additional cost. Approximately 40 percent of Medigap enrollees had annual incomes below $40,000...
...These undisclosed incentives are so pervasive that several insurance marketing organizations act as clearinghouses to advertise information about multiple companies’ various travel incentive programs for agents to seek bonuses with...
...Pushing seniors to purchase Medigap from one company over another can have real consequences when they enroll in plans that are unaffordable or do not meet their needs.....
...Another conflict may occur when agents push seniors to enroll in a plan from the company that best suits their own personal interest....
https://www.warren.senate.gov/imo/media/doc/FINAL Medigap Sales Report1.pdf
