90% Navigator Funding Cut: More Consumers Will Rely on Insurance Agents

In February 2025, the U.S. Department of Health and Human Services (HHS) announced a 90% reduction in ACA Navigator funding, cutting the budget from $100 million to $10 million for the upcoming year. This is the largest funding cut the program has ever faced, significantly impacting consumer outreach, education, and enrollment assistance.

Navigator programs were established under the ACA to provide fair and impartial assistance to individuals enrolling in Marketplace plans, Medicaid, and other health coverage options. With this drastic funding reduction, more consumers will likely turn to licensed insurance agents and brokers to navigate their coverage choices.

What Do Navigators Do?

Navigators offer free, year-round assistance to consumers by:

• Helping individuals enroll in ACA Marketplace plans
• Assisting those transitioning between Medicaid, employer coverage, and ACA plans
•  Conducting outreach and education in underserved communities
• Providing post-enrollment support for income verification, claims, and billing issues

However, unlike insurance agents and brokers, Navigators do not earn commissions and focus primarily on consumer assistance rather than sales. In previous years, studies have shown that Navigators were significantly more involved in Medicaid and CHIP enrollments compared to brokers. With this funding cut, many of these essential services will be scaled back or eliminated, increasing reliance on agents and brokers for enrollment support.

"With this drastic funding reduction, more consumers will likely turn to licensed insurance agents and brokers to navigate their coverage choices."

What Does This Mean for Insurance Agents?

With fewer Navigators available, this presents a major opportunity for insurance agents to step in and serve consumers who need help enrolling in ACA plans. Here’s how:

✅ Be proactive – Reach out to individuals who may have previously used Navigator services and offer your expertise in ACA enrollment.

✅ Educate consumers – Many people will need guidance on Marketplace subsidies, Medicaid eligibility, and coverage options—position yourself as the go-to expert.

✅ Leverage community outreach – Navigators previously handled a lot of education and outreach in rural and underserved areas. Agents who step in to fill this gap can build strong client relationships and grow their book of business.

✅ Streamline the enrollment process – With fewer assistance programs available, clients will value efficient, knowledgeable support to navigate their options quickly and effectively.

These cuts come at a critical time, as enhanced Marketplace subsidies are set to expire and potential Medicaid funding reductions loom. With millions of consumers needing to re-evaluate their coverage, agents who act quickly will be well-positioned to expand their client base and increase retention.

Partner with PSM Brokerage & Expand Your ACA Business

With the 90% cut to ACA Navigator funding, more consumers will be looking for trusted insurance agents to help them navigate their health coverage options. This is your chance to step in, grow your client base, and increase your commissions—and PSM Brokerage is here to help you succeed.

Now is the time to take advantage of this shift in the market and position yourself as a trusted ACA expert. Work with PSM Brokerage and get the tools, training, and support you need to maximize your success.

📞 Let’s Talk! Schedule a call today to see how PSM Brokerage can help you thrive in the evolving ACA landscape.

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