For the fourth 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 2019 filings in the coming months.

Medicare Part D Maximum Broker Commissions

Initial commissions increased from $72/member/year to $74/member/year, a 2.78% increase YOY.

Renewal commissions increased from $36/member/year to $37/member/year, a 2.78% increase YOY.

Medicare Advantage Maximum Broker Commissions

These numbers are broken out by state/region.

For CA and NJ, initial MA commissions increased from $567/member/year to $601/member/year, a 6% increase YOY. Renewal commissions increased from $284/member/year to $301/member/year, a 5.99% increase.

For CT, PA and DC, initial MA commissions increased from $511/member/year to $542/member/year, a 6.07% increase YOY. Renewal commissions increased from $256/member/year to $271/member/year, a 5.86% increase.

For Puerto Rico and the U.S. Virgin Islands, initial MA commissions increased from $312/member/year to $331/member/year, a 6.09% increase YOY. Renewal commissions increased from $156/member/year to $166/member/year, a 6.41% increase.

In all other states, initial MA commissions increase from $455/member/year to $482/member/year, a 5.93% increase YOY. Renewal commissions increased from $228/member/year to $241/member/year, a 5.7% increase.

Here’s a chart comparing the increases from last year.

Maximum Broker Compensation for 2019

  Initial Renewal
Product Region 2018 2019 % 2018 2019 %
MAPD National $455 $482 5.93% $228 $241 5.7%
CT, PA, DC $511 $542 6.07% $256 $271 5.86%
CA, NJ $567 $601 6% $284 $301 5.99%
Puerto Rico, U.S. Virgin Islands $312 $331 5.93% $156 $166 6.41%
PDP National $72 $74 2.78% $36 $37 2.78%

(By comparison, Medicare Advantage commission increases ranged from 2.5% to 2.8% for 2018.)