Consumer Alert: Fee-only Medicare advisors are not regulated by CMS and may not have any formal training. If they give you wrong information, you have no recourse or protection as a consumer.
Read this before you pay out-of-pocket for Medicare advice.
As you approach 65, enrolling in Medicare can feel like navigating a maze—full of confusing terms, deadlines, and options you don’t want to get wrong.
It’s no wonder many people look for help. Some turn to fee-based Medicare advisors—people who charge for their guidance instead of working on commission. But before you reach for your wallet, you should know: not all Medicare help is created equal.
What is a Fee-Only Medicare Advisor?
A fee-only Medicare advisor is an unlicensed individual who charges clients directly for Medicare advice, often in the form of high hourly rates or flat fees. They are not licensed to sell insurance, are not overseen by the Centers for Medicare and Medicaid Services (CMS), and are not required to have formal Medicare training or certifications.
Unlike licensed agents or brokers, they cannot enroll you in a Medicare plan and are not held to federal compliance standards. There are no consumer protections in place if you receive incorrect or incomplete information from a fee-only advisor.
Unlicensed fee-based Medicare “advisors” operate as para-professionals—skirting compliance, education, and ethical standards while charging seniors for advice they may not be qualified to give.
Why Some People Choose Them (and Why You Should Think Twice)
Fee-based advisors often market themselves as “unbiased,” because they don’t earn commissions. But the truth is: you’re still paying for advice—just out of your own pocket instead of through a plan.
Here’s what they don’t tell you:
- Independent licensed agents offer the same Medicare guidance—for free
- Licensed agents are regulated, trained annually, and held to CMS compliance rules
- They can also enroll you in a plan on the spot, saving you time and stress
Fee-only advisors? They leave that part to you.
Know the Risks
Unnecessary Costs:
Paying $200–$500+ out-of-pocket for help you could get for free doesn’t make sense for most people—especially when living on a fixed income.
No Accountability:
Licensed agents are held to strict rules by CMS. Fee-based advisors have no such oversight.
Outdated Information:
Without required training or continuing education, fee-based advisors may give you outdated or incomplete advice. That can lead to costly mistakes.
No Enrollment Help:
Even after charging you, many will leave you to figure out enrollment on your own.
Important: It’s Illegal for Licensed Medicare Agents to Charge You Directly
By law, licensed Medicare agents are compensated by insurance carriers—not by you. Their help is built into the cost of your plan, whether you use them or not. That means:
- No extra cost
- No hidden fees
- No pressure—just honest, regulated advice
⚠️ Ethical Risks of Working with Fee-Only Medicare Advisors
- No accountability: These advisors are not licensed or regulated by any state insurance department or CMS.
- No fiduciary standard: They aren’t required to put your needs ahead of their own financial gain.
- No transparency: Pricing and advice vary widely, with no standard or oversight.
- Risk of misinformation: They are not required to complete any Medicare-specific education or training.
Bottom line: Without regulation, there are no guarantees of ethical conduct or recourse if things go wrong.
What to Do Instead
Before paying a fee, connect with a licensed independent Medicare agent. They:
- Compare plans from multiple carriers
- Help you choose based on your doctors, prescriptions, and budget
- Guide you through enrollment step by step
- Provide ongoing support year after year
And again—there’s no cost to you.
Final Thought
It’s okay to feel overwhelmed by Medicare. But you don’t have to face it alone—or pay out-of-pocket for help that might not be accurate or complete.
Make a smart move.
Talk to a licensed agent who’s regulated, trained, and ready to help—without charging you a dime.
Explore More Medicare Insights:
- What to Do With Medicare When You Move – Learn how to update or switch your plan when changing states.
- Medicare Supplement Enrollment Periods – Know when you can switch or apply without medical questions.
- Using Prescription Discount Cards with Medicare – Can you stack savings or will it interfere with coverage?
