For the fifth year in a row, CMS has raised maximum broker commissions for Medicare Advantage and Medicare Part D initial enrollments.
Note, insurance providers are NOT REQUIRED to pay the maximum commission rate. We’ll report when insurance companies’ release their 2020 filings in the coming months.
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Medicare Part D Maximum Broker Commissions
Initial commissions increased from $74/member/year to $78/member/year, a 5.40% increase YOY.
Renewal commissions increased from $37/member/year to $39/member/year, a 5.40% increase YOY.
Medicare Advantage Maximum Broker Commissions
These numbers are broken out by state/region.
For CA and NJ, initial MA commissions increased from $601/member/year to $636/member/year, a 5.82% increase YOY. Renewal commissions increased from $301/member/year to $318/member/year, a 5.64% increase.
For CT, PA and DC, initial MA commissions increased from $542/member/year to $574/member/year, a 5.90% increase YOY. Renewal commissions increased from $271/member/year to $287/member/year, a 5.90% increase.
For Puerto Rico and the U.S. Virgin Islands, initial MA commissions increased from $331/member/year to $350/member/year, a 5.74% increase YOY. Renewal commissions increased from $166/member/year to $175/member/year, a 5.42% increase.
In all other states, initial MA commissions increase from $482/member/year to $510/member/year, a 5.80% increase YOY. Renewal commissions increased from $241/member/year to $255/member/year, a 5.80% increase.
Here’s a chart comparing the increases from last year.
Maximum Broker Compensation for 2020
|CT, PA, DC||$542||$574||5.90%||$271||$287||5.90%|
|Puerto Rico, U.S. Virgin Islands||$331||$350||5.74%||$166||$175||5.42%|
(By comparison, Medicare Advantage commission increases ranged from 2.78% to 6.41% for 2019.)