How do Medicare agents get paid
If you are wondering “How do Medicare agents get paid?” you are in the right place. Medicare commissions offer high up front commissions and more importantly, substantial renewal commissions. We have provided an example below of an agent writing business in CT, PA or DC. This is based off average sales but there are many independent agents that write much more than the example. This post focuses on Medicare Advantage and PDP sales. To learn more about Medicare Supplement sales CLICK HERE
Medicare income example based off sales in PA, CT and DC
In CT, PA and DC, you earn $607 per new Medicare Advantage sale. If you sell 10 policies per month, that’s $6,070. Multiply that by 12 and you’ll earn $72,880 your first year. The best part about Medicare sales is the renewals. Renewals are lifetime with most companies Advantage plans. They are half of the initial commission. Using this same example an agent would get $36,440 in renewals in year 2. How would that look in a few years?
If you continued to sell 10 policies per month, your second year total earnings would be $109,320. ($72,880 + 36,440) In year 3 at the same pace, your earnings would be $145,760! This example assumes no attrition to the book. Medicare books of business retain very well but they will have some attrition. Most agents will factor in about a 5% attrition rate.
How do Medicare agents get paid in my state?
We have provided a list of the CMS maximum commissions for every state. CLICK HERE TO SEE MEDICARE COMMISSIONS IN ALL STATES FOR 2021
How long will the commission renewals pay to me?
Commission pay for life so you will continue to receive commissions as long as the client has the plan. The insurance companies pay the commissions directly to the agent so the agent owns the book. With proper planning, Medicare revenue can provide income during retirement or even generational income.
When do the insurance companies pay?
Commission payment timing is fairly standard with most carriers. Watch this recorded webinar for more details on how and when you get paid
Want to learn more about Medicare sales? Feel free to give us a call, look at our agent quick start guide or review our library of recorded webinars on on Medicare sales. We help agents in all areas of Medicare sales including free online enrollment systems, free Medicare leads, training and more. Review the links below for more information.