For the fourth 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 2019 filings in the coming months.
Medicare Part D Maximum Broker Commissions
Initial commissions increased from $72/member/year to $74/member/year, a 2.78% increase YOY.
Renewal commissions increased from $36/member/year to $37/member/year, a 2.78% increase YOY.
Medicare Advantage Maximum Broker Commissions
These numbers are broken out by state/region.
For CA and NJ, initial MA commissions increased from $567/member/year to $601/member/year, a 6% increase YOY. Renewal commissions increased from $284/member/year to $301/member/year, a 5.99% increase.
For CT, PA and DC, initial MA commissions increased from $511/member/year to $542/member/year, a 6.07% increase YOY. Renewal commissions increased from $256/member/year to $271/member/year, a 5.86% increase.
For Puerto Rico and the U.S. Virgin Islands, initial MA commissions increased from $312/member/year to $331/member/year, a 6.09% increase YOY. Renewal commissions increased from $156/member/year to $166/member/year, a 6.41% increase.
In all other states, initial MA commissions increase from $455/member/year to $482/member/year, a 5.93% increase YOY. Renewal commissions increased from $228/member/year to $241/member/year, a 5.7% increase.
Here’s a chart comparing the increases from last year.
Maximum Broker Compensation for 2019
| Initial | Renewal | |||||
Product | Region | 2018 | 2019 | % | 2018 | 2019 | % |
MAPD | National | $455 | $482 | 5.93% | $228 | $241 | 5.7% |
CT, PA, DC | $511 | $542 | 6.07% | $256 | $271 | 5.86% | |
CA, NJ | $567 | $601 | 6% | $284 | $301 | 5.99% | |
Puerto Rico, U.S. Virgin Islands | $312 | $331 | 5.93% | $156 | $166 | 6.41% | |
PDP | National | $72 | $74 | 2.78% | $36 | $37 | 2.78% |
(By comparison, Medicare Advantage commission increases ranged from 2.5% to 2.8% for 2018.)
Share Post