Medicare Agent Commission Rates 2022

The 2022 Medicare Advantage agent compensation information is available for three Medicare products: Medicare Advantage (MA and MAPD), Medicare Part D, and Medicare Supplement Plans. Centers for Medicare and Medicaid Services (CMS) sets maximum allowable commission an insurance agent can make. Not all Medicare carriers will pay the maximum allowable commission, but most do and the maximum authorized rate per enrollment has climbed for the past five years in a row.

The CMS does not control Medicare Supplement Commissions:

The MS commission is calculated as a percentage of the premium, which can range from 12% to 20% depending on the carrier and supplement plan. Commissions are paid for a specific period of time: six years is typical for those that restrict payment years.

How and when do agents receive their commissions?

It’s crucial to note that agents don’t always be paid the whole amount listed on the list when they submit a case because the amount is determined by the enrollment’s date.

When a Medicare Advantage plan is sold to someone who does not already have a MAPD plan, the agent receives the entire commission. When he sells to someone who already has a MAPD plan, he receives half of the commission allowed.

If a client is new to Medicare, the agent will receive the full commission without any proration. The initial and true-up payments are split in half. The true-up can take anywhere from two weeks to a month.

The renewal commission is half of the initial payment, and it begins in January of the year following enrollment.

If an agent enrolls a client who is not new to Medicare, he will be compensated on a pro-rated basis, which means he will be paid based on the month the new policy becomes effective. The agent is paid a third of the whole commission if the effective date is September 1, 2021, as 4 months starting from Sept 1, 2021, represent the third of the full year.


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