Medicare insurance agents have two primary contract structures to choose from: Street-Level and Licensed Only Agents (LOA) contracts. Both options have distinct advantages and drawbacks, depending on an agent’s career goals, experience level, and desired level of independence. Understanding the differences between street level vs LOA contracts can help agents make an informed decision about which path is right for them.
Street-Level Medicare agent contract
A Street-Level contract is a contract for independant agents. With this contract, agents receive full street commissions directly from the carriers; their upline does not take any portion of the amount. They own their book of business. In other words, if they wan tot change uplines, they keep all their clients. The upline has no claim to their business. Agents with street-level contracts typically have greater flexibility in how they operate their Medicare business.
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LOA Medicare agent contract
An LOA (Licensed only Agent) contract requires the agent to assign all or part of their commission to their upline agency. In return, the agency may provide office space, leads,marketing assistance, training and sometimes a base salary. LOA agents are considered part of an agency rather than independent brokers.
Key Differences Between Street-Level and LOA Contracts
| Feature | Street-Level Contract | LOA Contract |
|---|---|---|
| Commission Ownership | Agent receives full commission and renewals | All or part of the commissions is assigned to the agency |
| Book of Business | Agent owns book of business – it goes with him | Agency owns book – if agent leaves he loses all clients |
| Income Potential | Higher long-term earning potential through renewals | May include salary and/or lower commission splits |
| Administrative Responsibilities | Agent handles compliance, contracting, and renewals – costs are on him | Agency may handle many back-office tasks and may provide E&O |
| Training & Support | Limited agency-provided training; agent must be more self-sufficient | Strong agency support, mentorship, and resources |
| Marketing Assistance | Must handle personal lead generation and marketing | Agency often provides leads and marketing tools |
| Flexibility & Independence | Full control over business operations – flexible schedule | Must follow agency schedule, guidelines and sales processes |
| Transitioning to Independence | Easy to build and maintain a personal book of business and maybe an agency | Difficult to transition as the agency owns the clients – you start from 0 if you leave |
Street level vs LOA Contracts Pros and Cons
Find out what the street level cmmissions are for 2025
Street-Level Pros
- Full commission ownership, including renewals
- Control over carrier selection and sales strategy
- Higher income potential over time
- Flexibility to build a personal brand and business
Street-Level Cons
- Must handle marketing, lead generation, and compliance independently
- No agency-provided salary, need your own funds to get started
- Find a good upline or get no upfront support or guidance
- Must be wellorganized with a strong business acumen and self-discipline
LOA Pros
- Agency-provides training, support, and mentorship
- Less administrative burden, allows agents to focus on sales
- Access to agency-generated leads and marketing resources
- Possible salary or base compensation for stability
LOA Cons
- No ownership of commissions or book of business
- Limited control over carriers and product offerings
- Earnings may be less than independent agents
- Difficult to transition to independent status; loss of clients
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Deciding which contract is right for you
Choosing between a street-level and LOA contract depends on your career goals, level of experience and work ethic.
- New agents who need training, leads, and support may benefit from an LOA contract.
- Experienced agents who want to maximize long-term income and control their business may be better off with a street-level contract.
- Agents who prefer stability may appreciate the structured environment of an LOA contract, while those who are entrepreneurial may thrive with a street-level contract.
Crowe offer our agents the freedon of Street level contracts with the support of an LOA contract.
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Both street-level and LOA Medicare contracts offer unique benefits and trade-offs. Agents should carefully evaluate their financial goals, desire for independence, and need for support before making a decision. Whether choosing the independence of a street-level contract or the structured support of an LOA contract, the key is to select the option that aligns with long-term career aspirations in the Medicare insurance industry.