Medicare Commission 2018
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. We have listed the Medicare Commission 2018 amounts below.
Although CMS sets the maximum commission amount, the insurance companies may choose to pay a 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. With an LOA contract, compensation is paid to another entity and not the agent placing the business. 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, the state of the sale and premium amount will have a influence on commission levels.
Medicare Part D Medicare Commission 2018
FYI: agents need to know that the initial compensation for Medicare Part D has increased from $71 a member per year up to $73 a member per year. This is a 1.4% increase.
Replacement compensation remains the same at $36 for each member per year.
Medicare Advantage Medicare Commission 2018
Please Note: The rates vary according to state therefore, we have listed the Medicare Advantage commission 2018 plan compensation rates by state.
For both CA and NJ, initial Medicare Advantage commissions increased from $553 per member a year to $567 per member a year. (This is a 2.5% increase). Replacement commissions increased from $27 per member a year to $284 per member a year. (This is also a 2.5% increase).
In the states of CT and PA as well as DC, initial Medicare Advantage commissions increased from $498 per member a year to $511 per member a year. (This a 2.6% increase). Replacement commissions increased from $249 a member per year to $256 a member per year. (This is a 2.8% increase).
In all other states, initial Medicare Advantage commissions increased from $443 a member per year up to $455 a member per year. (This is a 2.7% increase). Replacement commissions increased from $222 a member per year to $228 a member per year. ( This is a 2.7% increase).
If you would like to view the official CMS announcement – Click here for CMS official announcement
Medicare Commission 2018 Pro rated payments
Agents now receive Medicare commission payments on a pro rated basis. Any cases placed for effective dates after January 1 will be pro rated. For example, an enrollment effective April 1st will generate a commission payment for 9/12ths of the standard commission. This is the case because; the member will only be enrolled for 9/12ths of that year. An enrollment effective September 1st will generate a payment of 3/12ths of the standard commission. As a result, there are three ways commissions can pay out.