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
|CT, PA, DC||$511||$542||6.07%||$256||$271||5.86%|
|Puerto Rico, U.S. Virgin Islands||$312||$331||5.93%||$156||$166||6.41%|
(By comparison, Medicare Advantage commission increases ranged from 2.5% to 2.8% for 2018.)