Medicare Commissions 2026 for Medicare Advantage & PDP Plans
As the Medicare industry evolves, so do the rules and compensation guidelines set by CMS. For 2026, CMS has released updated Medicare commissions 2026 for Medicare Advantage (MA) and Prescription Drug Plans (PDPs). Every Medicare agent needs to be aware of the new amounts and the policy changes behind them.
Below is a breakdown of what’s changing and how it impacts your commissions heading into the 2026 Annual Enrollment Period (AEP).
2026 Maximum Commission Rates
Each year CMS sets a fair market value (FMV) for agent compensation. These rates represent the maximum allowable compensation carriers can pay agents for enrollments and renewals of Medicare Advantage and Part D plans.
Medicare Advantage (MA) Initial Compensation:
- National base: $694 (up from $626 in 2025) this is the rate for any state not listed below.
- Renewal compensation: $347 per renewal (up from $313)
Connecticut, Pennsylvania, District of Columbia:
- Initial compensation: $781
- Renewal: $391
California and New Jersey:
- Initial compensation: $864
- Renewal: $432
Puerto Rico and U.S. Virgin Islands:
- Initial compensation: $474
- Renewal: $237
Prescription Drug Plan (PDP) Compensation:
- Initial enrollment: $114 (up from $100 in 2025)
- Renewal: $57
These are maximums. Carriers are not required to pay this amount but may do so depending on their policies and agent contracts.
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Why CMS Raised MA Commissions
The substantial increase in MA commissions; particularly the national base, is part of CMS’s broader effort to:
- Align compensation with the increased workload and compliance obligations placed on agents
- Encourage transparency and fair practices in marketing and enrollments
- Reflect rising healthcare costs and inflationary trends
Watch a video on Medicare commission payment details
Compliance Remains Critical
With higher compensation comes increased scrutiny. CMS continues to crack down on misleading marketing, aggressive sales tactics, and non-compliant enrollments.
Key compliance reminders for 2026:
- Scope of Appointment (SOA) forms must be completed 48 hours before most marketing appointments
- Call recordings of all Medicare-related sales calls are still required
- Third-party marketing organizations (TPMOs) must clearly disclose affiliations and limitations of plan representation
As commissions rise, expect CMS and carriers to take a firmer stance on agent conduct, training, and documentation.
Stay updated on agent events and information
Agent Tips to Maximize Success
- Stay current on training: Complete your AHIP and carrier certifications early.
- Educate your clients thoroughly: Higher commissions can mean more scrutiny, make sure clients understand their options.
- Build long-term relationships: Renewal commissions continue to rise, rewarding agents who support their clients beyond initial enrollment.
- Diversify your offerings: Include PDPs and Medigap plans or ancillary benefits where appropriate; some clients may benefit more from a supplement and drug plan.
- Leverage compliant marketing: Use CMS-approved marketing materials and ensure your lead generation efforts are transparent and ethical.
The 2026 updated commission amounts are great news for agents who work hard to serve the Medicare community. Higher commissions and a continued emphasis on compliance and ethics mean; it is a good time to refine your strategy, refresh your knowledge, and recommit to providing excellent service.
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