In response to an increase in complaints about marketing misconduct surrounding the sale of Medicare Advantage (MA) and Part D prescription drug plans, the Centers for Medicare & Medicaid Services (CMS) has issued a series of rules intended to curb inappropriate conduct by insurance companies, agents and brokers, and other third-party marketing organizations. In April 2024 the agency issued a rule to help ensure that compensation for marketing activities aligns with the health care needs of Medicare beneficiaries. But firms that support agents and brokers challenged the rule in court, and the compensation regulations are now on hold.
This Issue Brief explores the role of, payment to, and incentives for Medicare agents, brokers, and other third-party marketing organizations. It also examines the regulatory oversight of Medicare marketing and sales, CMS’s efforts to better protect beneficiaries, and legal challenges to the April 2024 rule.
Update: A decision in the court case discussed in the brief was issued on August 18, 2025. Read about the decision, its implications, and possible next steps here.
- Read the full Issue Brief here.