CMS freezes new ACA broker sign-ups as it cuts 760,000 enrollees
- CMS paused new ACA agent and broker registrations through Feb. 1.
- The agency is terminating coverage for more than 760,000 people it called unauthorized.
- New brokers were 11% of brokers but 30% of compliance terminations.
- CMS has sent termination notices to more than 200 agents and brokers since January.
WASHINGTON, D.C., UNITED STATES — The Centers for Medicare and Medicaid Services (CMS) has frozen new agent and broker registrations for the Affordable Care Act (ACA) exchanges and is terminating coverage for more than 760,000 people it says were enrolled without authorization.
The moratorium, effective immediately through an interim final rule, means no new agents or brokers can register to help consumers enroll in marketplace coverage when open enrollment begins in November.
New brokers drew a disproportionate share of terminations
The pause is expected to last until Feb. 1 and applies to states using the HealthCare.gov platform, Healthcare Dive reported.
Although new brokers make up only 11% of all brokers, they accounted for 30% of compliance-related terminations for the 2026 plan year, according to the CMS.
The agency said it has sent termination notices to more than 200 agents and brokers misusing the system since January.
Brokers with active 2026 exchange agreements are not affected by the freeze, but all existing agents must now re-verify their identities.
The CMS also set up an anti-fraud group of Department of Health and Human Services (HHS) leaders to “drive a unified, sustained response to fraud” in the marketplace.
Broker group warns of reduced enrollment capacity
The moratorium could reduce capacity during the upcoming open enrollment period, as legitimate brokers seeking to enter the market will be locked out for at least several months.
“A blanket moratorium on new registrations is a blunt and inappropriate response to a problem CMS admits is concentrated and not reflective of the wider industry,” said Kevin Mayeux, CEO of the National Association of Insurance and Financial Advisors.
“No amount of fraud is ever acceptable,” said Chris Bond, a spokesman for AHIP, the national trade association for the health insurance industry.
Consumer advocacy group Families USA said the administration was using fraud accusations as a “political smokescreen” to take coverage away from hundreds of thousands of people.
For health plans, fewer new brokers during open enrollment could shift more member questions to plan-run call center and enrollment support teams.
Payers preparing for that load can weigh healthcare outsourcing support, comparing options among the top U.S. healthcare outsourcing companies before open enrollment begins.
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