Haris Ashley
Medicare insurance agents can earn in three ways: flat dollar amounts on applications, percentages of premiums sold, and renewal commissions. Agents earn these streams of income directly from the insurance carrier. Medicare Advantage and Prescription Drug Plan products have maximum commission amounts, regulated by the Center for Medicare and Medicaid Services (CMS). Agents selling Medicare Supplements, on the other hand, earn a percentage of the premiums of the policies they sell. The average salary for Medicare insurance agents is $52,680 per year, with the majority of Medicare salaries ranging between $38,500 and $60,000. However, income can increase over time, with some agents reporting earnings of over $100,000 annually after five or more years in the business, and a small minority earning over $200,000.
| Characteristics | Values |
|---|---|
| Average salary | $52,680 per year |
| Salary range | $22,000 to $78,000 per year |
| Salary range (alternative estimate) | $38,500 to $60,000 per year |
| Salary after 5 years | $100,000+ per year |
| Salary after 5 years (alternative estimate) | $200,000+ per year |
| Commission structure | Flat dollar amount per application, percentage of premium sold, and renewal commissions |
| Commission amount | Varies by carrier, state, and contract |
| Maximum commission for Medicare Advantage plans | $306 per year |
| Commission for new Medicare Advantage clients | $612 for the first year, $306 per year after |
| Maximum commission for drug plans | $50 per year |
| Commission for new drug plan clients | $100 for the first year, $50 per year after |
| Commission for supplement plans | Varies by carrier and state |
| Typical compensation for supplement plans | $180 to $300 per year |
| Commission for Medicare Advantage and Part D plans | Flat dollar amount |
| Commission for Medicare Supplements | Percentage of premiums |
| Commission for Prescription Drug Plans | Very little |
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What You'll Learn
Medicare insurance agent salaries
Medicare insurance agents can earn money in three ways: flat dollar amounts on applications, percentages of premiums sold, and renewal commissions. Agents earn these streams of income directly from the insurance carrier. The amount an agent earns depends on their contract and agency, work ethic, ability, and leads.
The Centers for Medicare & Medicaid Services (CMS) establishes yearly maximum broker commissions for Medicare Advantage and Medicare Part D, but insurance companies are not compelled to pay these amounts. The amount received from Medicare Advantage and PDP sales may depend on the carrier and the agent's contract with them. Agents get a share of the premiums of the insurance they sell while selling Medicare Supplements. Unlike Medicare Advantage and Part D, CMS does not set a maximum broker commission for Medicare Supplements. These commissions vary from carrier to carrier and contract to contract. The federally set maximum commission for Medicare Advantage plans is $306 per year. For drug plans, it's $50 per year, with a double payment in the first year. For supplement plans, it varies by carrier and state.
According to ZipRecruiter, the average salary for Medicare insurance agents is $52,680 per year. The majority of Medicare salaries range between $38,500 and $60,000. The lowest 3% of agents earn around $22,000 per year, and those in the 90th percentile earn over $78,000. However, another salary estimate site puts the average Medicare agent salary in the US at $80,000, with earners in the lower percentile bringing in $57,451 at minimum.
Most Medicare agents report earning under $50,000 in their first complete year. A small minority earn $150,000 or more. Incomes increase in subsequent years, with more agents earning six-figure commissions. About half of agents who stick to the business for five or more years earn over $100,000 annually from Medicare insurance commissions. Some 18.4% report earning over $200,000 annually from selling Medicare insurance sales after five or more years in the business.
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Commission structures
Medicare insurance agents can earn through three streams of income: flat dollar amounts on applications, percentages of premiums sold, and renewal commissions. Agents earn these directly from the insurance carrier. Medicare Advantage and Prescription Drug Plan products have maximum commission amounts, which are regulated by the Center for Medicare and Medicaid Services (CMS).
The CMS sets maximum broker commissions for Medicare Advantage and Medicare Part D annually, but insurance carriers are not required to pay these amounts. Agents selling these plans may receive less compensation depending on the carrier and their contract. Agents selling Medicare Supplements, on the other hand, earn a percentage of the premiums of the policies they sell, with no maximum commission set by the CMS. These commissions vary from carrier to carrier and contract to contract.
The level of the agent within the organization also affects the commission structure. Lower-level agents, such as LOAs, may assign their commissions to their uplines, receiving a percentage back, an hourly wage, or other benefits. Independent agents, while affiliated with distributors or general agencies, pay for their expenses out of their earnings.
The specific commission structure for Medicare insurance agents can vary depending on the insurer, state regulations, and the type of policy. Commissions for Medicare insurance products tend to be lower than for other insurance products due to higher demand, resulting in lower marketing costs for agents.
While Medicare insurance sales can be lucrative, success varies among agents. Many agents report earning under $50,000 in their first year, with some earning $150,000 or more. Over time, incomes tend to increase, with about half of agents earning over $100,000 annually after five or more years in the business.
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Medicare Advantage and Part D plans
Medicare insurance agents can be employees of the contracted company or independent agents who are not employees. The commissions for Medicare Advantage and Part D plans are set annually by the Centers for Medicare and Medicaid Services (CMS) and are based on the fair market value (FMV). The higher an agent's level, the more commission they receive. Agents can receive a flat dollar amount per application or a percentage of the premium sold.
For 2025, the national maximum broker compensation rate for Medicare Advantage sales will be $626 for initial sales and $313 for renewals. The 2025 national maximum broker compensation for Medicare Part D will be $109 for initial sales and $55 for renewals. These rates are not mandatory for insurance carriers, and the amount an agent receives may depend on their contract with the carrier. Agents can also receive residual or renewal income, which is money paid every year a client stays enrolled in their initial plan or switches to a similar plan type. This is where agents make most of their money, with some carriers paying lifetime renewal income.
Medicare Advantage, also known as Part C, combines the benefits of Original Medicare with additional benefits like prescription drug coverage under one plan. These plans are becoming increasingly popular with beneficiaries due to their affordability and additional benefits. Over 26 million individuals were enrolled in a Medicare Advantage plan as of 2021, accounting for 42% of the total Medicare population.
Commissions for Medicare Part D plans in 2022 were capped at $87 for initial plan enrollment and $44 for each renewal year. Independent agents can also sell standalone prescription drug plans to those looking to add prescription drug coverage to their Original Medicare plan.
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Medicare Supplement plans
Medicare Supplement Insurance, also known as Medigap, is extra insurance that can be purchased from a private health insurance company. This insurance helps to cover the out-of-pocket costs not included in Original Medicare Parts A and B, such as coinsurance, copayments, or deductibles. Generally, an individual must have Original Medicare (Part A and Part B) to be eligible for a Medigap policy.
Medigap plans are lettered A through G and offer benefits at higher premiums with limited out-of-pocket costs. Plans K through N are cost-sharing plans that offer similar benefits at lower premiums but with greater out-of-pocket costs. The availability of these plans and their specific benefits may vary depending on the state and the insurance carrier. For example, individuals in Massachusetts, Minnesota, or Wisconsin may find that their Medicare Supplement policy is named differently than the standard plan names.
When it comes to Medicare Supplement plans, insurance agents typically earn a percentage of the premiums of the policies they sell. The commission structure can vary depending on the carrier and the contract. The level of the agent within the agency can also impact their earnings, with higher-level agents generally receiving higher commissions.
According to surveys, most Medicare agents, including those selling Medicare Supplement plans, report earning under $50,000 in their first year. However, incomes tend to increase with experience, and some agents earn over $100,000 annually after being in the business for five or more years.
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Career prospects
Medicare insurance agents can earn in three ways: flat dollar amounts on applications, percentages of premiums sold, and renewal commissions. Agents earn these streams of income directly from the insurance carrier. The percentage of premiums sold is a percentage of the premiums of the policies they sell. The higher the level of the agent, the more commission the agent receives. Agents who sell Medicare Advantage and Part D plans are paid a flat dollar amount on the premium sold. Agents who sell Medicare Supplements earn a percentage on the premiums for each product they sell, instead of a flat dollar amount.
The Centers for Medicare & Medicaid Services (CMS) establishes yearly maximum broker commissions for Medicare Advantage and Medicare Part D, but insurance companies are not compelled to pay these amounts. The amount you receive from Medicare Advantage and PDP sales may depend less on the carrier and your contract with them. Unlike Medicare Advantage and Part D, CMS does not set a maximum broker commission for Medicare Supplements. These commissions vary from carrier to carrier and contract to contract.
The federally set maximum commission for Medicare Advantage plans is $306/year. If the client is new to MA, you get double that the first year and $306 each year after. For drug plans, it's $50/year with a double payment in the first year. For supplement plans, it varies by carrier and state.
According to ZipRecruiter, the average salary for Medicare insurance agents is $52,680 per year. However, averages can be misleading. The majority of Medicare salaries range between $38,500 and $60,000. The lowest 3% of agents earn around $22,000 per year, and those in the 90th percentile earn over $78,000. Another salary estimate site puts the average Medicare agent salary in the US at $80,000, with earners in the lower percentile bringing in $57,451 at minimum.
Most Medicare agents report earning under $50,000 in their first complete year. A small minority do earn $150,000 or more. Incomes increase in subsequent years, with more agents earning six-figure commissions. About half of agents who stick to the business for five or more years earn over $100,000 annually from Medicare insurance commissions. Some 18.4% report earning over $200,000 annually from selling Medicare insurance sales after five or more years in the business.
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Frequently asked questions
Most Medicare agents make under $50,000 in their first year, with a small minority earning $150,000 or more.
Medicare insurance agents earn through flat dollar amounts on applications, percentages of premiums sold, and renewal commissions.
Incomes increase in subsequent years, with about half of agents who stick to the business for 5 or more years earning over $100,000 annually. Some 18.4% of agents report earning over $200,000 annually after 5 years or more in the business.
