SelectQuote Approvals Fall 18% as Medicare Plans Shrink
The insurance broker reported fewer approved Medicare Advantage policies and lower revenue in its first fiscal quarter of 2027.
Updated on Nov. 9, 2026 in Healthcare
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SelectQuote approved 18% fewer Medicare Advantage policies in the first quarter of fiscal 2027 compared with a year earlier, while total revenue fell to $280 million from $329 million. Lifetime commission value per approved policy nonetheless rose 16% to $890.
Why it matters
Fewer insurers offering individual Medicare Advantage coverage for 2027 leaves roughly 2.8 million general-enrollment members in plans no longer available, affecting how seniors choose coverage during enrollment. The shift also shows how carriers competing for re-enrollment are paying more per policy even as broker volume declines.
SelectQuote's Healthcare Services segment revenue fell 16% to $186 million, while segment adjusted EBITDA rose 56% to $11.2 million and final expense premiums fell 32% to $20.1 million. The company maintained fiscal 2027 revenue guidance of $1.35 billion to $1.45 billion, though the extraction does not explain how those targets will be met.
The players
SelectQuote
SelectQuote is a publicly traded insurance distribution company that sells Medicare Advantage and other health and life coverage through a large network of licensed agents.
Aetna
Aetna is a major national health insurer and a unit of CVS Health that offers Medicare Advantage plans across much of the country.
The details
SelectQuote reduced its senior agent headcount heading into Annual Enrollment Period and tightened member qualification criteria, cutting SelectRx membership 7% to 99,753. Aetna will also withhold commissions on 123 Medicare Advantage plans across 33 states for the 2027 plan year.
Timeline
May 2025: The Department of Justice joined a False Claims Act case alleging kickback payments to steer beneficiaries into Medicare Advantage plans from 2016 to 2021.
September 2026: A court order set an electronically stored information protocol in the case, heard in the District of Massachusetts.
December 7, 2026: The Medicare Annual Enrollment Period ends.
Market Landscape
The Inflation Reduction Act's reimbursement headwinds are pressing on Medicare-focused distributors, which SelectQuote's segment revenue decline illustrates. Carriers still competing for re-enrollment are raising what they pay per policy, a dynamic that favors the brokers who remain in the market.
Medicare Advantage members in plans that are no longer offered for 2027 will need to pick new coverage during enrollment. Shoppers comparing plans should check whether their current plan is still available before the deadline.
The takeaway
Seniors reviewing Medicare options should confirm their current plan's 2027 availability early rather than waiting for the final weeks of enrollment. Checking coverage and provider networks now reduces the risk of a costly gap in coverage.
What happens next
The Medicare Annual Enrollment Period ends on December 7, 2026, the deadline for seniors to choose 2027 coverage.
Further reading
Explore more Healthcare coverage to see how Medicare market changes are affecting insurers and brokers nationwide.
Source note: This article includes information reported by Insurance Business.
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