Nebraska Notice on Medicare Advantage Plan Sales by Consultants

Detected March 19th, 2026

Summary

The Nebraska Department of Insurance has issued a notice allowing insurance consultants to sell Medicare Advantage plans, provided they comply with state statutes and CMS marketing rules. This change is in response to reduced commissions for insurance producers.

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What changed

The Nebraska Department of Insurance (NDOI) has issued a notice clarifying its stance on the use of consultants for selling Medicare Advantage plans. Previously, CMS disallowed such practices. However, following a recent CMS response, the NDOI will permit consultants to sell these plans, provided they adhere to state consultant statutes, Medicare Advantage marketing rules, and impose only reasonable fees.

This change allows entities that may have been restricted from selling Medicare Advantage plans due to commission structures to now operate as consultants. Compliance officers should ensure that any consultants involved in selling these plans in Nebraska strictly follow all state laws, CMS marketing guidelines, and that their fee structures are demonstrably reasonable to avoid potential regulatory scrutiny.

What to do next

Ensure consultants comply with Nebraska state statutes for consultants.
Verify adherence to all Medicare Advantage marketing and sales rules.
Confirm that consultant fees are reasonable.

Source document (simplified)

NOTICE: Sales of Medicare Advantage Plans by Insurance Consultants

The Nebraska Department of Insurance (Department), in response to the reduction or removal of commission to insurance producers by Medicare Advantage carriers, asked the Centers for Medicare and Medicaid Services (CMS) whether or not the use of consultants was allowable. Consultants, as opposed to insurance producers, charge a reasonable fee for their advice and placement of insurance business as opposed to obtaining a commission from a company. Previously, CMS had disallowed, pursuant to federal rules, the use of consultants in the sale of Medicare Advantage products.

The response received by the Department from CMS seemingly indicates that the use of consultants falls to what is allowed under state law. Therefore, the Department will not disallow the use of consultants in the sale of Medicare Advantage plans so long as the state consultant statutes are followed, the Medicare Advantage marketing and all other rules surrounding the sale of the product are followed and the fee imposed is reasonable.

To view NDOI's published guidance documents, visit the Guidance Documents webpage.

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