The Consolidation Wave Is Here
And It’s Moving Faster Than Most Agencies Realize

A Market That Is Compressing

The Medicare brokerage landscape is entering a new phase.

Not expansion.
Consolidation.

According to McKinsey & Company:

• Member churn is increasing as plan disruptions accelerate
• Customer acquisition costs are rising sharply
• Margin pressure is forcing weaker brokers out of the market

This is creating a clear pattern:

• Some brokers are exiting
• Others are actively seeking acquisition
• And a smaller group is consolidating share

Those winning are not just bigger.

They are better built.

The Advantage of Being Connected

The brokers gaining ground share one thing in common:

Infrastructure.

They operate with:

• Strong carrier relationships
• Scalable operational systems
• Technology that improves performance at the agent level

This is allowing them to:

• Command stronger administrative economics
• Scale faster across markets
• Capture displaced clients more efficiently

Meanwhile, under-supported brokers are experiencing the opposite:

• Rising costs
• Lower efficiency
• Increasing pressure to exit or merge

The Independent Channel Is Leading — But Selectively

The rise of independent distribution reinforces this shift.

Data from LIMRA shows:

• Independent channels now drive 90%+ of IUL premium
• They continue gaining share across product lines

But this growth is not evenly distributed.

In today’s environment:

Intermediary quality matters more than ever.

The gap between high-performing organizations and the rest is widening — quickly.

The Demand Engine Isn’t Slowing Down

Despite short-term volatility, the long-term growth drivers are undeniable.

• 73M+ Americans are over age 65
• Representing $45.8 trillion in retirement assets
  Source: Plunkett Research / U.S. Census Bureau
• 10,000 Americans turn 65 every day

At the same time:

• 59% of health plan executives report a positive or extremely positive outlook for Medicare Advantage growth
  Source: Chartis

The conclusion is clear:

Demand is not the problem.

The Real Constraint

The constraint is execution.

As McKinsey & Company puts it:

Brokers must prove their value to payers — and that requires tools and infrastructure most do not have on their own.

This is the core shift.

Growth is no longer driven by:

• Access alone
• Geography
• Carrier mix

It is driven by:

• Operational efficiency
• Technology enablement
• The ability to deliver consistent value at scale

For Agents

The pattern is already visible.

The brokers exiting the market are not necessarily less experienced.

They are less supported.

The brokers gaining share are those who have:

• Reliable uplines
• Strong carrier access
• Technology that makes them faster and more effective

Because in a market with rising complexity:

Support translates directly into performance.

For Agencies

Consolidation is not random.

It is favoring agencies that can:

• Operate across multiple carriers
• Maintain visibility across their entire book of business
• Reduce cost per enrolled member

These agencies are not reacting to market changes.

They are absorbing them.

Where Carepoint Fits

Carepoint is built to position agencies on the right side of this shift.

With:

• 38+ carrier partnerships
• A presence across 42+ states
• The Carepoint Connect platform as operational infrastructure

We enable agencies to:

• Maintain flexibility in contracting markets
• Support agents at scale
• Operate with the efficiency required to compete

Because in a consolidating market:

Infrastructure determines who grows — and who gets absorbed.‍

The Medicare market is not shrinking.

It is consolidating around capability.

The opportunity remains massive.
The demand continues to grow.

But the distribution of that opportunity is changing.

And in this environment:

The winners are not just present in the market.
They are built to capture it.

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