Ritter Insurance Marketing, Craig Ritter

2018 Maximum Broker Commissions for Medicare Advantage & Medicare Part D

For the third 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 2018 filings in the coming months.

Medicare Part D Maximum Broker Commissions

Initial commissions increased from $71/member/year to $72/member/year, a 1.4% increase YOY.

Replacement commissions remain the same for 2018 at $36/member/year.

Medicare Advantage Maximum Broker Commissions

These numbers are broken out by state.

For CA and NJ, initial MA commissions increased from $553/member/year to $567/member/year, a 2.5% increase YOY. Replacement commissions increased from $277/member/year to $284/member/year, a 2.5% increase.

For CT, PA and DC, initial MA commissions increased from $498/member/year to $511/member/year, a 2.6% increase YOY. Replacement commissions increased from $249/member/year to $256/member/year, a 2.8% increase.

In all other states, initial MA commissions increase from $443/member/year to $455/member/year, a 2.7% increase YOY. Replacement commissions increased from $222/member/year to $228/member/year, a 2.7% increase.

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

Maximum Broker Compensation for 2018

  20172018Increase
ProductRegionInitialRenewalInitialRenewalInitialRenewal
MAPDNational$443$222$455$228$12$6
CT, PA, DC$498$249$511$256$13$7
CA, NJ$553$277$567$284$14$7
Puerto Rico, US Virgin Islands$304$152$312$156$8$4
PDPNational$71$36$72$36$1$0

(By comparison, Medicare Advantage commission increases ranged from 2.9% to 3.4% for 2017.)

Posted by filed under CMS, Medicare Advantage, Part D, States .


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