Medicare Advantage Plan Commission
Medicare Advantage plan commission rates are both set and regulated by CMS. As a result, CMS typically posts Medicare Advantage commission rates each fall. Click here for current commission information. CMS has raised the maximum broker commission for 2017. In addition, compensation for Medicare Advantage plans an Part D (RX) Plans have risen for the second year.
CMS sets the maximum commission amount but insurance companies can choose to pay lower commission rate. Commissions paid may not exceed the set maximum. A broker’s contract level can impact the Medicare Advantage Plan commission. A licensed only agent (LOA) contract can result in commissions being paid below the 2017 max. These rules apply only to Medicare Advantage plan commission and Medicare RX plan (Part D) commission as well. In fact, Medicare Supplement plans do not fall under CMS compensation guidelines. Medicare supplement commissions can vary to a large extent. Both the carrier and the state of the sale will have a influence on commission levels.
Medicare Part D Maximum Broker Commissions
Initial comp has increased from $63/member/year to $71/member/year. This is a 12.7% increase.
Replacement comp has increased from $32/member/year to $36/member/year. This is a 12.5% increase.
Medicare Advantage Maximum Broker Commissions
Medicare Advantage commission 2017 plan compensation rates are given by state.
For both CA and NJ, initial MA commissions increased from $536/member/year to $553/member/year. This is a 3.2% increase. Replacement commissions increased from $268/member/year to $277/member/year. This is a 3.4% increase.
For CT and PA as well as DC, initial MA commissions increased from $483/member/year to $498/member/year. This a 3.1% increase. Replacement commissions increased from $242/member/year to $249/member/year. This is a 2.9% increase.
In all other states, initial MA commissions increased from $429 a member per year up to $443 a member per year. This is a 3.3% increase. Replacement commissions increased from $215/member/year to $222/member/year. This is a 3.3% increase.
In short, In 2016, Medicare advantage commission increases ranged from 4.7% to 5.4%.
Contracting
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Lead Program
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