Montana Takes A Stand On Medicare Insurance Practices

The Montana Commissioner of Securities and Insurance issued an advisory memorandum outlining concerns about what the agency describes as unfair trade practices affecting Medicare-eligible consumers in the state.

The memorandum, dated Nov. 4, 2025, explains that its goal is to clarify the Montana Commissioner of Securities and Insurance's (CSI) view on unfair trade practices that manipulate the health insurance market and prevent Medicare-eligible consumers in Montana from accessing products.

The advisory applies to “all carriers and producers offering any health insurance plans to Montanans eligible for Medicare, including Medicare Advantage plans.” According to the CSI, the office has received reports that some carriers offering Medicare Advantage plans have attempted to restrict consumer access by “removing the enrollment application from their website,” “discouraging agents from selling their products,” and “changing or discontinuing producer compensation during the plan year.”

“Such practices appear to be unfair trade practices under Montana law,” the memorandum states. It adds that “it is inappropriate and unfair—and potentially harmful to Montana consumers—when carriers restrict access to products filed and approved for marketing in Montana or discourage independent agent sales for these products.”

To read the ful memorandum, click Here.

The memo lists several requirements for carriers, including making enrollment applications “available and easily accessible,” not discouraging the sale or marketing of approved products, and not changing producer compensation mid-year. It also notes that refusing to pay commissions can disincentivize producers and reduce consumer access, particularly when carriers have historically paid commissions or included them in rate development.

“All carriers and producers operating in Montana who offer insurance products to Medicare-eligible residents must act in good faith,” the guidance section states. Filed and approved products “must be accessible and marketed without artificial barriers or disincentives,” and plans with commissions built into rates should compensate producers unless explicitly filed as “zero commission.”

The Commissioner’s office said it will monitor compliance and “may take enforcement action against any carrier or producer engaging in practices that manipulate the market or harm consumers.”

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The memorandum emphasizes that it serves as an agency interpretation of existing law and “does not enlarge, delimit, or otherwise modify any requirements of applicable law.” Questions may be directed to the Market Conduct Bureau Chief at 406-444-2040 or csi.marketconduct@mt.gov.