The Centers for Medicare and Medicaid (CMS) raised the maximum Medicare agent commissions for Medicare Part D and Medicare Advantage plans for the fifth year in a row. That means you can make a lot of money on Medicare commissions during AEP 2020. While carriers are not required to pay the maximum, they usually don’t pay much less, because they want you to sell their products.
Medicare Part D and Medicare Advantage Agent Compensation
CMS-regulated maximum commissions from carriers differ between Medicare Part D prescription drug plans (PDP) and Medicare Advantage Prescription Drug (MAPD) plans. Compensation amounts for both types of plans increased from 2019 to 2020.
Medicare Advantage Prescription Drug Plans
The maximum compensation for MAPD plans varies from state to state:
For CA and NJ, the commissions for initial MAPD sales increased from $601 per member per year to $636 per member per year, which is a 5.82% increase. Commissions for renewals increased from $301 per member per year to $318 per member per year, which is an increase of 5.64 percent.
For CT, PA and DC, the MAPD commissions for initial sales increased from $542 per member per year to $574 per member per year, which is an increase of 5.9 percent. Commissions for renewals increased from $271 per member per year to $287 per member per year, which is an increase of 5.9 percent.
For Puerto Rico and the U.S. Virgin Islands, the commissions for initial MAPD enrollment increased from $331 per member per year to $350 per member per year, which is an increase of 5.74 percent. Commissions for renewals increased from $166 per member per year to $175 per member per year, which is an increase of 5.42 percent.
In all other states, commissions for initial MAPD enrollment increased from $482 per member per year to $510 per member per year, which is an increase of 5.8 percent. Commissions for renewals increased from $241 per member per year to $255 per member per year, which is also an increase of 5.8 percent.
Medicare Part D Plans
Commissions for initial enrollments increased from $74 per member per year to $78 per member per year, which is an increase of 5.4 percent. Commissions for renewals increased from $37 per member per year to $39 per member per year, which is also an increase of 5.4 percent.
Maximum Medicare Commissions in 2019 and 2020
This chart compares the commission increases from last year.
Medicare Supplement Commissions
Commissions for selling Medigap plans vary from carrier to carrier. It may sound confusing, but it works in your favor to partner with a great FMO that can connect you to many different carriers. You want to provide your clients with the plans that can offer the most benefit, and provide yourself with opportunities to earn more.
How to Increase Your Commission
Maintaining strong client relationships is the key to maximizing your compensation. People are much more willing to buy from someone they know and trust. Follow up with your clients and use a CRM to document every interaction in order to make sales tracking more efficient. You can sell additional items in your follow-up appointments depending on the time of year and what type of plan your client has. One caveat is that CMS won’t let you sell a product your client hasn’t already agreed to talk about.
Clients who have PDPs and Medigap plans can make changes to their plans or enroll in new plans whenever they want. They don’t have to wait until the Annual Enrollment Period (AEP), which is every year from October 15 to December 7. Use that to your advantage in your follow-up calls and appointments. Make sure your clients’ plans fit their current needs, and offer plans with different coverage if they don’t. If your clients make changes to their insurance policies during your meetings, you get the commission.
Your Medicare Advantage clients may have to wait for the AEP to make changes to their existing plans or enroll in new policies, but you still get the commission if clients make changes during your meetings. That makes strong client relationships and following up even more important. A year is enough time to forget about someone, and you want your clients to remember you and the excellent customer service you provide.
How We Help Agents Earn Top Medicare Commissions
At Senior Market Advisors, we give our agents the tools they need to succeed. When you partner with us, you have the opportunity to sell plans from all of the major carriers and maximize your potential to make money. You’ll also gain free access to our proprietary CRM and have an experienced sales and marketing team to help your business grow. Ready to start? Call 1-844-452-5020 or eContract with us today.