The author is director of the American Association for Medicare Supplement Insurance (AAMSI) and receives a salary for conducting research and consumer educational efforts. AAMSI does not earn any commissions but is supported by insurance professionals who market Medicare insurance products.
Insurance agents and brokers who sell Medicare Advantage plans will be paid more in 2023.More than 30 million Americans are now enrolled in Medicare Advantage (MA) programs, according to the latest data from the Centers for Medicare & Medicaid Services (CMS).
Companies that contract with Medicare to provide health care coverage typically use licensed insurance agents or brokers to sell their Medicare plans. Sometimes these individuals are employees of the contracted company. In other situations, the companies hire independent individuals who are not employees.
According to the 2023 Medicare Advantage Agent Commissions report, commissions have increased to $601 per-member, for the initial contract year. This represents a 4.89% increase over the $573 commission for 2022. Renewal commissions increased to $301/member/year, a 4.88% increase over 2022.
Insurance agents in California and New Jersey are paid more. The initial Medicare Advantage commissions increased to $750 for each new member enrolled in a MA plan. This is a 4.9% increase over the 2022 amount of $715. Renewal commissions paid for subsequent years of policy enrollment increased from $358 to $375, a 4.75% increase.
Lower commissions are earned by insurance agents selling Medicare Advantage (MA) coverage in Connecticut, Pennsylvania and the District of Columbia. For 2023 the initial MA commissions increased to $678 from from $646, a 4.95% increase. Renewal commissions increased from $323/member/year to $339/member/year, a 4.95% increase.