Medicare Advantage commissions Medicare Advantage commissions

Medicare Advantage commissions

By Ed Crowe | Agent blog | 0 comment | 11 March, 2019 | 0

Medicare Advantage commissions

If you are thinking about becoming a Medicare agent, you will want to understand Medicare Advantage commissions. One thing to be aware of is, this is the forth year in a row that CMS has increased the commission rate for Medicare Advantage plan sales. Although the rates have been raised, please note that all carriers do not have to offer the maximum commission rate. Therefore the commission amount may vary by carrier.

CLICK HERE FOR UPDATED COMMISSION RATES FOR 2021

Medicare Advantage commissions listed by state

The following figures are the maximum commissions that Medicare advantage plan carriers are paying agents/brokers. The amounts are grouped by states with similar figures. We start with the highest paying states and go from there. The increases for 2019 range from 5.7% to 6.41%, whereas last year 2018 the increases ranged from 2.5% to 2.8%. This year there have been substantial increases; which should help boost sales of MA plans in general.

Medicare Advantage Commissions payout depends on the type of MA or MAPD sale

Click for recorded Webinar on MAPD comp payouts

The highest MA commissions are in the states of CA and NJ.

For these states, the initial enrollment Medicare Advantage or MA commissions have gone up from $567 each new member per year to $601 for a new member per year. That is a 6% increase in the commission rate. The Renewal commission rate has gone up from $284 a member each year to $301 a member each year. This adds up to a 5.99% increase in commission earnings.

In the states of CT and DC as well as PA:

The initial Medicare Advantage enrollment commissions have gone up from $511 each new member per year to $542 each member per year. This adds up to a 6.07% increase in earnings per application. The renewal commissions have gone up from $256 a member per year to $271 a member per year. This is an increase of 5.86%.

In the areas of both Puerto Rico and the U.S. Virgin Islands:

Medicare Advantage commissions have gone up from $312 each member per year to $331 a member per year. This adds up to an increase of 6.09%. The renewal commissions have gone from $156 a member per year to $166 a member per year. This is the largest increase of all states at 6.41%.

All the other states:

The MA commissions for new members has gone from $455 each member per year up to $482 each member per year. This amounts to an increase of 5.93%. The commission rate for renewal of an MA plan has gone up from $228 each member per year to $241 each member per year. This is a 5.7% increase.