Centene (NYSE:CNC) has decided to stop paying commissions to brokers and agents who help people obtain the company’s Medicare prescription drug plans starting next year, Stat News reported Tuesday.

Citing an email sent by Centene (CNC) subsidiary WellCare to brokers, the publication said that changes will be applicable for the 2025 plan year.

“We have made a difficult decision — effective Jan. 1, 2025 — to cease new and renewal commissions for [Medicare Part D plans] beginning with the 2025 plan year,” WellCare said.

Being the largest Part D player, the move is expected to save hundreds of millions of dollars for Centene (CNC).

Many brokers believe the new strategy aims to drive members towards Medicare Advantage plans, which also offer Part D coverage and draw higher funding from the federal government.

Centene (CNC) reported 6.6M enrollees in Medicare Part D plans as of June 30, a ~47% YoY increase, while its Medicare membership, which includes enrollees in its Medicare Advantage plans, indicated an ~11% YoY drop to ~1.1M.