How Agents Influence Medicare Beneficiaries Plan Choices
Increasing transparency and reporting on carriers’ actual compensation payments — as opposed to the CMS-defined maximums — across MA, Part D, and Medigap could help address this. Policymakers also should consider additional regulatory clarity around the administrative payments, bonuses, and other forms of compensation. For Medigap plans, the agent’s commission is typically a percentage of the annual plan premium; the medicare agent percentage is set and the commission paid by the insurer. Unlike MA and Part D, the rates are not set by CMS or individual states. A recent report indicates that first-year commissions for enrollments in Medigap are approximately 20 percent of annual premiums, but they can vary based on the state or plan type. The commission for subsequent years (i.e., the renewal commission) is set at 10 percent of the premium. There are two potential requirements you’ll need to meet to get your health insurance license to sell Medicare. Medicare has neither reviewed n...