We will give you some information to help answer the question – How Much Can A Medicare Agent Earn.  Our Free Medicare Lead Program will reimburse agents at 100% for up to $500 a month for their lead costs.  There is no reduction in compensation and you own your book.  Using our program, lets assume an agent places 5 cases a month during the Medicare SEP.  We will go with the Medicare Advantage compensation of $539 with a renewal of $270.  (Keep in mind, MAPD compensation is different by state.  Click here for Medicare commissions by state).  We will also assume an agent writes 50 cases during AEP.

During SEP the agent will write 5 cases a month for 9 months (Jan – Sept) which is 45 cases.  During AEP (Oct 15 through Dec 7th) they will write 50 cases for a total of 95 cases.  There will also be Medicare supplement sales involved but to keep it simple we will stick with MAPD for the purposes of this example.

Of the 50 policies closed during open enrollment we will assume 20 are new to Medicare ($511 comp) and 30 are MAPD to MAPD changes ($256 comp)   That comes to a total of $17,902 in commission. They also placed 45 cases during SEP and a large number of those would be new to Medicare so we will assume 35 new to Medicare ($511 comp) and 10 MAPD to MAPD. ($256 comp)  That comes to a total of $20,445.  That brings us to a total first year comp of $38,347

NOTE:  THESE EXAMPLES USE 2015 DATA.   CLICK HERE FOR THE 2022 MEDICARE COMMISSION AMOUNTS.

How much can a Medicare agent earn – renewal example

Assume that an agent closes the same number of sales each subsequent year along with the renewals of $256 a case and we get the following totals below (Factoring in a 10% lapse/attrition rate on renewals)

2nd year:  $38,347 new sales commission + 1st year renewals $24,320 = $62,667.00 total commission

3rd year:  $38,347 new sales commission + 2nd  year renewals $43,776= $82,123.00 total commission

4th year:  $38,347 new sales commission + 3rd  year renewals $65,536 = $103,883 total commission

5th year:  $38,347 new sales commission + 4th year renewals $87,552 = $125,889 total commission

As a matter of fact, these numbers are very realistic.  An agent can certainly sell more.  In addition, annuity sales can add to totals.  If an agent sold a $250,000 annuity at a 5% commission, they would be adding an additional $12,500.

Additionally, an agent could sell final expense policies.  Assume twenty $600 premium cases are sold (total $12,000),  not to mention,  70% commission would also gross another $8,400.

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