For the eighth year in a row, CMS has increased the maximum broker commissions for Medicare Advantage and Medicare Part D plans. Here is a little information and a quick reference chart to know what to expect in the coming year.
Medicare Advantage
Something to keep in mind for Medicare Advantage maximum broker commission is they are broken out by state in some cases. For instance, in CA and NJ, the initial rate will increase from $715/member/year to $750/member/year, an increase of 4.9%. With renewal commissions going from $358/member/year to $375/member/year, a 4.75% increase.
In CT, PA, and DC initial commissions and increasing from $646/member/year to $678/member/year, which is 4.95%. While renewals in these states will increase from $323/member/year to $339/member/year, also making a 4.95% increase.
Additionally, for Puerto Rico and the U.S. Virgin Islands, initial commissions shall increase from $394/member/year to $411/member/year or 4.31%. Renewal commissions increased from $197/member/year to $206/member/year or 4.57%.
Finally, all other states’ initial maximum commissions will increase from $573/member/year to $601/member/year, making 4.89%. With renewal commissions going from $287/member/year to $301/member/year or 4.88%.
Medicare Part D
Across the board initial and renewal commissions are increasing by roughly 5%, but to be more specific, initial Medicare Part D commissions will increase from $87/member/year to $92/member/year, making an increase of 5.75% from the previous year.
For renewals, Medicare Part D commissions will go from $44/member/year to $46/member/year, making an increase of 4.55% from the previous year.
Maximum Broker Compensation for 2023
Important Note
Please note that insurance providers are not required to pay the maximum Medicare commission rate. If you have any questions about these rates, or would like to learn more about new carriers coming to you market in 2023, contact us!