Despite the critics, the Medicare Advantage market continues to present great opportunities for insurance agencies to grow their earnings.
However, success in 2025 requires more than a strong sales pitch—it demands strategic planning, a focus on retention, and a making friends with data!
Get this! According to the CMS file for 2025 Medicare commissions, there are over 281,000 plans between MAPD and PDPD that leverage brokers for enrollments. In fact, it’s 281,920 to be exact, representing 99% of all plans.
This should tell you that agents have a massive market to tap into, but standing out as a top performer means being prepared, knowledgeable, and value-driven.
I took a look at the two rather large files from CMS before writing this article and want to share some fresh statistics to help you unlock the full potential of your commissions.
Understand Medicare Advantage Commission Rates for 2025
Each year, the Centers for Medicare & Medicaid Services (CMS) sets maximum allowable commission rates for Medicare Advantage plans. These rates provide a baseline for agents, but competitive compensation often depends on the specific plans and carriers you represent.
- Initial Enrollment Commissions: The high end of initial compensation for 2025 averages over $623 per plan in states like Alabama and Arkansas.
- Renewal Commissions: While not as lucrative as initial enrollments, renewals are vital for building consistent, long-term income.
Actionable Steps:
- Review State-Specific Rates: Compensation varies significantly by state. For example, Puerto Rico pays $428, Washington pays $611 and New Jersey pays $780.
- Geo target your sales: Consider geo targeting your marketing campaigns to capture higher commission states while taking advantage of the time zones to maximize your sales time.
Focus on Client Retention
Client retention is the cornerstone of earning renewal commissions. With 99% of Medicare Advantage plans actively utilizing brokers, your ability to nurture long-term relationships is critical to sustained earnings. But, there will come a point where you need staffing to help support your existing customers while still growing your agency.
Strategies to Increase Retention:
- Annual Plan Reviews: Offer yearly reviews to ensure clients’ needs are met, especially as plan networks, benefits and drug formularies change.
- Superior Customer Service: Set yourself apart by responding quickly to questions and proactively addressing concerns. It can be as simple as turning off your auto responder and just answering the phone!
- Educate Clients: Many beneficiaries are unaware of supplementary products that can fill gaps in coverage. Taking the time to educate builds trust on products such as hospital indemnity and dental & vision plans.
Retaining even 90% of your clients year-over-year will significantly boost your earnings, ensuring steady renewal commissions and put you in the top tier of most productive agencies.
Cross-Sell Supplementary Products
With plans like HMO and PPO representing over 74,000 and 62,000 options respectively, there’s plenty of opportunity to offer add-ons that enhance client satisfaction and increase your income.
Products to Consider:
- Hospital Indemnity Plans: These plans are ideal for Medicare Advantage clients facing potential out-of-pocket costs for hospital stays.
- Cancer Plans. These are critical for Medicare Advantage plans with large out-of-pocket maximums. There is a high probably each household will experience cancer in their life time, these plans help prevent unexpected financial disaster.
Actionable Steps:
- Use your knowledge of carrier portfolios to identify which add-ons pair well with the most popular plans in your state.
- Highlight the financial advantages of these supplementary plans to build stronger client relationships.
Supplementary products often have renewal commissions as well, so when you pair the core health insurance plan with a supplementary plan, you not only increase retention (more money), but you sell another product solution (more money)
Get paid to do the right thing.
Build Strategic Carrier Relationships
Choosing the right carriers to work with is crucial for maximizing your earnings. For example, according to CMS, United leads the industry with 882 unique plans, offering robust opportunities for agents who build strong relationships with this carrier at the local level across the country.
What to Look For in Carriers:
- Strong claims paying ability.
- Stable historical financials.
- A broad portfolio of plans that include popular extras like gym memberships or telehealth benefits.
- Supportive tools, such as co-branded marketing materials or webinars that are already compliance approved.
Commissions are great, but you should be looking at how the plan impacts the customer first, and if you do that enough, you’ll write higher quality business that pays renewals longer.
My advice*Make sure you have the big players, but absolutely diversify your carrier portfolio. While United and Humana dominate market share, working with smaller carriers can help you meet niche client needs. Yes, you’ll need to add more certifications, but providing what your customers need is the best way to maximize your sales and income.
Leverage Technology for Efficiency
Efficient systems save time and allow you to focus on what matters, selling and retaining clients.
Tools to Consider:
- Quoting and Enrollment Platforms: Platforms like Sunfire or Connecture streamline plan comparisons.
- CRM Systems: Use CRMs to track client history, leads, and retention.
- Marketing Automation: Schedule follow-ups and reminders to engage clients year-round.
Automate tasks like email outreach and plan reminders to free up time for more personal client interactions.
Expand Your Referral Network
Referrals are among the most cheapest ways to grow your client base. With over 1644 plans not currently using brokers, there’s still room to tap into underserved markets.
How to Build a Referral Network:
- Collaborate with providers like doctors, clinics, and senior centers.
- Create a referral incentive program for satisfied clients.
- Participate in community events to build brand awareness.
These are all things the SMA team can help you plan and implement, just let us know and we’ll get started helping you.
7. Invest in Continuous Education
Medicare is a rapidly evolving right in front of our eyes, in fact, I think this past year should be described as a wake up call to everyone!
Staying ahead of changes can give you an edge. For example, understanding why California leads the nation with 303 unique plans can inform your strategy in states with high plan variety.
Opportunities for Growth:
- Complete certifications as soon as they are out, including AHIP and carrier-specific training to reduce the time you are distracted with growth planning.
- Attend workshops to network and learn best practices.
- Stay informed about policy updates and CMS guidelines. The easiest way to do this is set up google alerts and set it to email you notification once a week.
Prioritize Marketing and Branding
With states like Florida (292 plans) and Texas (287 plans) providing fierce competition, marketing, PR, and advertising becomes a critical differentiator.
Marketing Tips:
- Enhance Your Online Presence:
- Optimize your website and google business page for local search terms like “Medicare Advantage agent near me.”
- Create blog content addressing common Medicare questions specific to the health systems in your target market.
- Use Social Media: Share client success stories and tips for AEP.
- Run Targeted Ads: Focus on states with the highest plan availability or largest concentration of niche benefit need for maximum ROI.
Conclusion
Maximizing your commissions in 2025 requires a combination of smart strategy, customer first behaviors, and leveraging available data.
With nearly 282,000 Medicare plans engaging brokers, the market is vast and full of potential.
Focus on retention, cross-selling solutions that your customer actually need to know about, and leveraging your carrier relationships to ensure a successful year.
Turn 2025 into your most lucrative year yet!
