Updated Medicare Commissions For 2023

Jul 25, 2022

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 insurers. 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.

AGA offers a cherry on top of the FMO cake – a Marketing Dollar Program and 50% CO-OP program that minimizes your marketing expenses, so you can get more qualified Medicare leads, at a fraction of the cost – meaning you end up with more profits in your pocket.

Partner with AGA to Get More Medicare Leads With Less Work.

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