How Much Can Brokers Make for Initial Enrollments and Renewals?


In the Medicare Marketing Guidelines (Sections 110.6.1 and 110.6.2), Centers for Medicare and Medicaid Services (CMS) details how brokers are allowed to be paid for initial and renewal enrollments.

What Are the MMG Rules About Initial Compensation?

After initially enrolling clients in Medicare products, brokers can be paid at or below the fair market value (FMV). The fair market value cut-off amounts are published and updated by CMS each year.

What Are the MMG Rules About Renewal Compensation?

Brokers can be paid for each annual renewal, after the first year of enrollment. The maximum amount you can be compensated for each enrollment is 50 percent of the current FMV for the plan your clients are enrolled in. While 50 percent FMV is the maximum compensation, the actual amount will vary based on the insurance company, or companies, you represent.

What Is the Current Fair Market Value?

FMVs are published and updated annually by CMS, and they may vary by location. For 2018, the fair market values for initial enrollment for the following products are as follows.

 

Product National Connecticut,
Pennsylvania, DC
California,
New Jersey
Puerto Rico,
US Virgin Islands
Medicare Advantage and Section 1876 Cost Plans $455 $511 $567 $312
Prescription Drug Plans $72 $72 $72 $72

For 2018, the fair market values for renewals for the following products are as follows.

Product National Connecticut,
Pennsylvania, DC
California,
New Jersey
Puerto Rico,
US Virgin Islands
Medicare Advantage and Section 1876 Cost Plans $228 $256 $284 $156
Prescription Drug Plans $36 $36 $36 >$36

 

Where Can I Find More Medicare Marketing Guidelines?

Visit our online resource center to see more. If you’re interested in other things Excelsior has to offer, such as teaching you how to double or triple your revenue, contact us today.

 

Sources: https://www.cms.gov/Medicare/Health-Plans/ManagedCareMarketing/CY2019_Medicare_Communications_and_Marketing_Guidelines.pdf | http://www.psmbrokerage.com/hubfs/CY%2018%20Agent%20Broker%20CompensationTraining%20Testing%20Requirements.pdf?t=1510757698988

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References
https://www.cms.gov/Medicare/Health-Plans/ManagedCareMarketing/CY2019_Medicare_Communications_and_Marketing_Guidelines.pdf

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