Ritter Insurance Marketing, Craig Ritter

CMS Releases Final 2015 Medicare Advantage (MA) and Part D (PDP) Broker Commissions

Below are the figures for 2015. See the increased Maximum Broker Commissions for 2018 here.

Looks like the initial commission rates for Medicare advantage are dropping across all states.  The Prescription drug commissions (PDP) are holding steady for another year.  Here is a summary of the commissions by state which are the MAXIMUM CMS will allow insurance companies to pay agents and brokers in 2015:

California and New Jersey – $510 Initial Medicare Advantage commissions

Pennsylvania, Connecticut and District of Columbia – $461 Initial Medicare Advantage (MA) Commissions

All other States – $408 Initial Medicare Advantage (MA) Commissions

Renewal for ALL years are UP TO 50% of the initial commissions.  I’m interpreting the guidance to mean that ALL MA renewals (regardless of year of entry) will be paid at UP TO 50% of the 2015 initial rate.

For Medicare Prescription Drug (PDP) commission are $56 Initial commissions and renewals are $28 for all years in 2015.


Here is a link to the CMS document:  CMS CY2015 Agent-Broker Compensation 5 27 14 (2)

Posted by filed under CMS .

  • Teresa Cole

    Does someone have the answer to this question? I am an independent agent selling MAPD with a carrier in WV and they are only paying at the renewal rate for all new apps I send in during the lock in. I am writing T65 and special needs MAPD which should pay at the first year rates (all my other companies pay first year comm on new beneficiaries during lock in) and renewal rate on people who have been on like plan before. Isn’t this breaking CMS rule since they came out with the commission rate for agents. Does anyone know the answer?

    • Tara

      Did you ever get an answer ?

  • Beth

    Does this payment after the first of the year apply to stand-alone Part D plans too?

  • Joe

    I am a financial planner CPA/CFP and have an agency to market medicare and other senior benefits. CMS went this route due to the last app rule and too many charge backs during AEP. Good move for insurance companies advancing commissions without current coverage.

  • Teresa cole

    I am shocked about what I just heard on commissions. I was in a Coventry seminar today and was told that from now on no commissions are going to be paid before 1/1/2015 for all sales made during this AEP. WOW. We will have to work the entire AEP with no check. Going to be very tough. Have you all heard this?

    • Teresa:

      Yes, this was part of the guidance when CMS confirmed the 50% that companies would not be allowed to pay until 1/1/15 on 2015 business.


  • Dan Heskett

    Is there any course of action we can take? Craig, do you have any names, email addresses or phone numbers we can politely vent our concerns?

  • Mike

    How can they get away with lowering the renewals from prior years rates? That is a huge slap in the face. The contracts we had for prior years business should be honored so our precious renewals are not affected. I do this business for the renewals. That is what its all about and CMS has a lot of nerve to go back and cut that. I have been selling Medicare Advantage since 2007 so it affects me a lot. I’ve heard CMS reps talk to my clients basically saying how us brokers are liars and only do what is right for us. If the current administration had its way we would all be eliminated.

  • Jim Lyter

    The carriers have been using ACA as an excuse to cut commissions at every opportunity since it passed for under 65. This is no different, an opportunity to cut commissions, and blame CMS. My guess is that they will absolutely lower payments for plans effective in 2014 to the 2015 level. I will be shocked if we ever see an increase the older years.

  • Joseph Yannuzzi Jr.

    With all the tests we are responsible for taking every year, compliance, the evaluations, CMS shoppers, etc. the last thing we need is to have our commissions cut by the Democrats, so they can have more money to put into the social programs for the “moochers” of society. Add to that the incredible tax rate we are subjected to and what is the use of staying in this business. The future doesn’t look good!

  • Renee

    I don’t know why anyone is surprised at this . . .they don’t value our services and I’m sure consider this business “easy” and a commodity. The independent agent is the one they truly don’t seem to understand relative to the value that we provide for the consumer. But . . . .I’ve stopped worrying about it. I just go about my business, try to do what’s right for the consumer, and hopefully I’ll be able to continue to be in this business. We’ll see . . . .

  • Mike

    Commissions have steadily increased since 2009. Pretty much increased like a COLA increase. Now they cut them. I just don’t get it.

  • Anonymous

    Is Medicare paying us to Certify this year? This should convince people to vote Republican. Funny Medicare gets a democratic nurse, Marilyn Tavenner, to run the show and commissions drop!

  • Anonymous


  • Mike

    What a load of manure. First year I have ever seen the commissions drop.

  • Anonymous

    seems to me the only party to benefit from this is the insurance companies

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