New York City-based Empire BlueCross BlueShield has cut its insurance broker commissions, meaning it won't pay brokers to sign members up for its plans, according to Crain's New York Business.
The change goes into effect April 1.
"We recognize that this change will present an additional challenge to you in a difficult market, as carriers adjust to the rapidly changing individual market," Empire BCBS wrote in an email to brokers, according to the report. "We remain committed to the individual market, and we thank you for sharing your expertise with your clients — our members — in this demanding environment."
Brokers who sign up consumers prior to April 1 will still receive a commission of $12 per member per month through the end of 2016. However, "a $6 per member per month bonus that was offered for brokers who enrolled new 2016 members into 2017 Empire plans won't be honored," according to the report.
Empire's decision follows that of other health insurers. Minnetonka, Minn.-based UnitedHealth cut commissions in December, and New York City-based Oscar Health lowered broker commissions the same month.
As of Sept. 30, Empire BCBS had 2.9 million members in New York city, according to the report.