Medicare agent compensation
If you have ever considered going into Medicare sales, you want to know about Medicare agent compensation.
INFORMATION IN THIS POST HAS BEEN UPDATED. CLICK HERE TO VIEW THE 2023 INFORMATION.
The good news is; maximum commission rates for Medicare Advantage as well as Part D plans have gone up for the third year. Medicare Supplement commissions continue to be a good source of income as well.
In most cases an agent/broker receives payment for the initial enrollment the first year the client starts a policy. This is also the case when, a client changes from one type of policy to different type. Generally agents receive half as much compensation for the following years.
Medicare agent compensation; you will receive a good deal of your income from policy renewals:
Usually, once you enroll a client in a plan, you receive the initial payment the first year. For each year after, if your client stays in that plan, you will receive a renewal commission. Certain carriers have a lifetime renewal commission while others have a commission cap after 5 or 6 years. It is important to check in with your client every year and make sure they are still in the best plan to provide what they need. This is true because clients needs as well as plan options change.
Keep in mind:
Although, the biggest part of many agents Medicare business is for people 65 and over, some other individuals are eligible for benefits as well. The people who collect Social Security disability benefits also qualify to receive Medicare.
Maximum commission rates for 2019:
|Initial Commission||Renewal Commission|
|MAPD||All other states||$455||$482||5.93%||$228||$241||5.7%|
|CT, PA, DC||$511||$542||6.07%||$256||$271||5.86%|
|Puerto Rico, U.S. Virgin Islands||$312||$331||5.93%||$156||$166||6.41%|
Medicare supplement/medigap policy commission rates vary according to both plan and carrier. The commissions are paid according to a percentage of the premium cost. This varies from plan to plan and carrier, area they are sold in as well as age of client.
It is great that there are so many options available to clients. This means your client will have a better opportunity to find a plan that will fit their individual medical as well as financial needs.
If you are interested in helping people get the security of having the proper coverage and having access to the tools that will make your job easier, CLICK THIS LINK TO GET CONTRACTED