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

  Initial Renewal
Product Region 2019 2020 % 2019 2020 %
MAPD National $482 $510 5.80% $241 $255 5.80%
CT, PA, DC $542 $574 5.90% $271 $287 5.90%
CA, NJ $601 $636 5.82% $301 $318 5.64%
Puerto Rico, U.S. Virgin Islands $331 $350 5.74% $166 $175 5.42%
PDP National $74 $78 5.40% $37 $39 5.40%

(By comparison, Medicare Advantage commission increases ranged from 2.78% to 6.41% for 2019.)