Updated Medicare Commissions For 2023
Now is a great time to be in Medicare sales. The maximum broker commissions have just increased for Medicare Advantage and Medicare Part D plans. If you plan on selling Medicare products in 2023, keep reading to see how you’ll be affected, and how Medicare commissions work.
What is a Maximum Broker Commission?
Insurance agents earn commissions directly from the carriers. When you sell Medicare Part D and Medicare Advantage plans, your agent compensation is based on your total number of enrollments and renewals each year, plus what kind of plans you sign beneficiaries up for.
How does it work?
The process for getting paid for Medicare Part D and Medicare Advantage plan signups each year is as follows:
- Centers for Medicare and Medicaid Services (CMS) determines the max commissions for Medicare Advantage plans and Medicare Part D plans each year. (The max commission is in line with fair market value.)
- It’s important to note that carriers are not required to pay the maximum commission rate. Please check each individual carrier’s commission rate for the most accurate payment amount.
- Agents get paid commissions when the beneficiary first enrolls in an MA or Part D plan.
- Agents will continue to get paid for each beneficiary yearly if stay with the plan, or switch through you – although the price is half of the original, first-time commission.
What are the New Medicare Advantage Maximum Broker commissions?
The new MA maximum broker commissions vary by region.
| Location | Initial Commissions Per Member/ Year | Initial Commissions Per Member/ Year |
| California & New Jersey | 2023: $750 2022: $715 4.90% INCREASE YOY |
2023: $375 2022: $358 4.75% INCREASE YOY |
| Connecticut, Pennsylvania, & District of Columbia | 2023: $678 2022: $646 4.95% INCREASE YOY |
2023: $339 2022: $323 4.95% INCREASE YOY |
| Puerto Rico & U.S. Virgin Islands | 2023: $411 2022: $394 4.31% INCREASE YOY |
2023: $206 2022: $197 4.57% INCREASE YOY |
| All other U.S. States | 2023: $601 2022: $573 4.89% INCREASE YOY |
2023: $301 2022: $287 4.88% INCREASE YOY |
What Are the New Medicare Part D Maximum Broker commissions?
| Initial Commissions Per Member/ Year | Initial Commissions Per Member/ Year |
| 2023: $92 2022: $87 5.75% INCREASE YOY |
2023: $46 2022: $44 4.55% INCREASE YOY |
What are the Medicare Supplement (Medigap) Maximum Broker commissions?
Medicare Supplement, or Medigap, commission rates are not dictated by CMS, but by the insurer. Medigap commissions are a percentage of the annual policy premium and can therefore vary.
What Can I do to Make 2023 My Most Profitable Year Yet?
Partnering with an FMO is the ideal way to build your Medicare business. FMOs help cut down on costs that can impact your bottom line, and also help build your lead pipeline.