How Agents Influence Medicare Beneficiaries Plan Choices
Agents’ compensation for Medicare Advantage , Medicare Part D, and Medigap is tied to enrollment and retention of beneficiaries and is paid by insurers. Maximum commissions for MA and Part D are set annually by the Centers for Medicare and Medicaid Services and are commensurate with fair market value . Within the maximums set by CMS, insurers determine the exact compensation level they will pay agents, which can vary by product or contract. CMS maximums are set nationally, although they may be higher in certain states because of cost of living and other conditions. For example, for 2022, CMS has set the maximum national commission for first-time enrollment in MA at $573 per beneficiary for most parts of the country. In California, however, the maximum first-time commission is $715. The first year you work, you will only earn commissions on initial sales. After that, you will earn commissions based on renewing sales, as well as any initial payments for new sales. You’ll even make mon...