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
|CT, PA, DC||$498||$249||$511||$256||$13||$7|
|Puerto Rico, US Virgin Islands||$304||$152||$312||$156||$8||$4|
(By comparison, Medicare Advantage commission increases ranged from 2.9% to 3.4% for 2017.)