Is Selling Medicare Lucrative?

May 31, 2022

If you’ve ever considered a career in insurance sales or are currently an insurance agent looking to increase your earning potential there’s never been a better time than now to get started in Medicare sales.

The Medicare market is booming and expanding at a rapid rate. According to data collected in the 2020 US Census, over 10,000 baby boomers cross the 65 year old threshold each day and by 2030 it is expected that all 73 million baby boomers will be aged 65 years or older. This burst of boomers aging into Medicare has created a great opportunity for those looking for a lucrative and stable career choice.

So, whether you’re a seasoned agent looking to start selling Medicare Advantage or Medicare Supplement plans, or are completely new to insurance sales and are wondering whether or not a career in Medicare sales is worth it, you’ve come to the right place. Keep reading as we cover how selling Medicare can be a lucrative career choice.

How to Start Selling Medicare Insurance?

Just like most career choices, getting started requires a little bit of legwork but the barriers to entry are low and can be completed in a short amount of time.  For those completely new to insurance sales, you will need to first obtain a health insurance license before you can begin to sell. Here are the steps required to begin selling Medicare insurance as an independent insurance agent:

  • Pre-license training (up to 52 hours, varies by state)
  • Pass State Exam
  • Fingerprints/ Background Check
  • Contracting
  • AHIP Certification
  • Individual Carrier Certifications
  • Errors & Omissions Insurance

For more information on the above requirements visit, “How Much Does it Cost To Become an Insurance Agent?

AGA Sales Requirements


How Much Can an Independent Agent Make Selling Medicare?

Selling Medicare can be very lucrative, but just like any other self-starter type of job, the more effort you put in, the bigger the payoff. When it comes to making money selling Medicare, there are two main ways you can earn income which include commissions and residual income.

A commission or initial payment is the money you receive when a client enrolls in a new plan.  This payment is paid to you directly from the insurance carrier. Maximum commission amounts for Medicare products are regulated by the Center for Medicare and Medicaid Services (CMS) and are updated each year. They can also vary depending on the state and region you are selling in.

A residual or renewal income is the money you receive every year your client stays enrolled in their initial plan or switches to a similar plan type. This is typically where agents make most of their money.  Some insurance carriers pay lifetime renewal income while others may cap the payout after five or six years.

Earn Top Commissions as an Independent Insurance Agent

Now that you know the type of income you can receive as an independent insurance agent selling Medicare, let’s take a look at the different types of Medicare products to sell:

Medicare Advantage

Medicare Advantage, also known as Part C, combines the benefits of Original Medicare with additional benefits like prescription drug coverage under one plan. Medicare Advantage plans are becoming increasingly popular with beneficiaries due to the affordability and additional benefits. As of 2021, more than 26 million individuals are enrolled in a Medicare Advantage plan accounting for 42 percent of the total Medicare population. Medicare Advantage enrollments are expected to rise 51 percent by 2030.

Commissions for Medicare Advantage are also on the rise. The national commission for an initial Medicare Advantage plan sale in 2022 is $573, while renewal commissions increased by 6% to $358 for 2022.

Medicare Supplement

Medicare supplement, also known as a Medigap plan, is another product independent agents can sell. These plans are used in conjunction with Original Medicare to fill in coverage gaps.  Like Medicare Advantage plans, Medicare Supplement plans are only offered through private insurance carriers.

Commissions for Medicare Supplement plans vary and are based on a percentage of the plan premium, rather than a flat rate.

Prescription Drug Plans

Independent agents can also sell standalone prescription drug plans, also known as Medicare Part D, to those looking to only add prescription drug coverage to their Original Medicare plan.

Commissions for Medicare Part D plans in 2022 are capped at $87 for initial plan enrollment and $44 for each renewal year.

Partnering with an FMO

Many independent insurance agents choose to partner with an FMO (Field Marketing Organization) to maximize their earning potential. An FMO, generally speaking, is an organization that provides Medicare insurance products as well as additional marketing and administrative support to independent agents and brokers to help further their career. Agents who partner with an FMO don’t earn any less than they would if they were to partner directly with a carrier and tend to have access to way more resources and support.

When partnering with an FMO it is important to look for an organization that is truly invested in the success of its partners and provides the support and tools necessary to succeed. When considering an FMO look for these key factors:

  • A comprehensive portfolio of carrier partners
  • Quality lead programs
  • Sales support
  • Helpful agent tools like a quote engine, online enrollment, commission reporting, etc.
  • Marketing support

AGA agents benefit from top-notch marketing support that includes FREE marketing dollars and a Co-Op marketing program that pays for 50% of their marketing budget.  With support like this, agents are able to grow their income at a faster rate!

  • Top level commissions that are 100% your own.
  • Allows you to own your book of business

As you can see, selling Medicare as an independent insurance agent can be very lucrative.  With Medicare sales, you are in control of your income.  The more effort you put in the bigger the reward!

Elevate your Earning Potential as an Independent Insurance Agent

Partner with an FMO that Understands what Agents need to Succeed!


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