Medicare Advantage commissions 2021
CMS has announced the Medicare Advantage commissions 2021. Starting in 2021, CMS has raised the maximum commission rates by approximately 6% for initial enrollments as well as renewals. You will appreciate hearing this if you are either just starting out as a Medicare agent or have been in the business for a long time.
Medicare Advantage commissions 2021: Please keep in mind, compensation varies by carrier. The carriers are not required to pay the CMS maximum amount.
You may want to know who is the CMS and why are they deciding on commission maximums. The CMS is part of the U.S. government’s department of health and human services and it stands for the Centers for Medicare and Medicaid services.
The CMS maximum is the highest allowable compensation pay for individual agents for 2021 for sales of MAPD, MA and PDP plans. The majority of carriers will increase their commissions according to the CMS maximum for new sales as well as renewals. A few carriers will not adjust payments for previously sold plans.
Medicare Advantage commissions 2021: Commission rates also vary according to area.
CT, PA and DC are the states that will have the highest Initial enrollment commission increase. The maximum in these states have gone up to 5.75%. Puerto Rico and the U.S. Virgin Islands maximum have increased by the next highest percentage at 5.71%. Nationally, states that have not be listed specifically have gone up to 5.69%, while both CA and NJ have gone up the least to 5.66%. All in all, this is still nothing to complain about.
The increases in commissions for plan renewals has also gone up almost 6%. The increase rate of 5.92% for CT, PA & DC is the largest. The second highest are the unspecified sates that follow the national renewal rates of 5.88%. Third are Puerto Rico and U.S. Virgin Islands with an increase of 5.71%. CA and NJ are set to receive a 5.66% increase.
Medicare Advantage commissions 2021: We have provided a link below for the actual 2021 Medicare Advantage commission rates. Additionally, the bottom of the chart lists the new maximum PDP compensation rates.
Medicare Advantage commissions 2021: Click here for Maximum CMS compensation for 2021
MA Plan maximum commissions for 2021 are as follows:
In the states of CT, PA & DC, the maximum initial compensation has gone up 5.75% from $574 in 2020 to $607 for 2021. The renewal rates for CT, PA & DC has gone up 5.92% from $255 per plan renewal in 2020 to $270 in 2021.
The maximum rates for both CA and NJ have gone up 5.66% from $636 in 2020 to $672 in 2021. Renewal commission maximums have gone up 5.66% in the states of CA and NJ from $318 in 2020 up to $336 in 2021.
In Puerto Rico and the U.S. Virgin Islands, the maximums have gone up 5.66% from $350 in 2020 up to $370 for 2021. The renewal rates for both of these states have gone up 5.71% from $175 in 2020 to $185 in 2021.
All other states not specified have gone up 5.69% from $510 in 2020 to $539 for 2021. Renewals for these states have gone up 5.88% from $255 in 2020 to $270 in 2021.
Department of Health and Human services/CMS official notice of change for 2021 Link to official document is here
Medicare referral fee maximums
The referral/finder fee limits will remain the same as 2019
- Medicare Advantage Prescription Drug and Medicare Advantage referrals: $100 per application
- PDP Sponsors Referrals: $25 per application
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