How Much Do Medicare Brokers Make?
Medicare Commissions, Renewals, & Residual Income Explained
Medicare Broker Commission Structure
(National Overview)
If you're considering becoming an Independent Medicare broker, one of the first questions you probably have is:
How do Medicare agents actually get paid?
Medicare brokers can earn income from new enrollments, while also building recurring renewal income over time.
Your Path to Independence Starts Here.
How Medicare Brokers Get Paid
Medicare brokers can earn income in three primary ways:
Initial
Commission
Earn commission when an eligible new client enrolls in a Medicare plan.
Renwal
Income
Earn recurring commissions when eligible clients remain active in future years.
Book
Growth
As your client base grows, your potential renewal income can grow with it.
2027 Medicare Broker Commission Rates
Medicare broker can earn income in three primary ways:
$725
Medicare Advantage
Initial Commission
$363
Medicare Advantage Renewal Commission
$130
Prescription Drug Plan Initial Commission
$65
Prescription Drug Plan Renewal Commission
Medicare Advantage and Prescription Drug Plan compensation is regulated annually by the Centers for Medicare and Medicaid Services (CMS). Actual compensation may vary based on carrier, market, state requirements, and applicable regulations.
How Initial Commissions Work
How Medicare Advantage Commissions Work:
When an independent broker enrolls an eligible new Medicare Advantage Client, the carrier pays an initial commission based on the applicable compensation rules.
Example: 10 New Medicare Advantage Clients
Using the 2026 national commission example:
10X $694 = $694 Gross Commission
But there is one important thing that every new Medicare broker needs to understand.
Medicare Advantage commissions are prorated.
The full annual amount is generally associated with January effective dates. Later effective dates receive a prorated amount.
Commission Proration
What Does Commission Proration Mean? 2026 Rates
Jan 1
$694
May 1
$462
Sep 1
$231
Feb 1
$636
Jun 1
$405
Oct 1
$173
Mar 1
$578
Jul 1
$347
Nov 1
$116
Apr 1
$520
Aug 1
$289
Dec 1
$58
Why Does The Commission Proration Matter?
A Medicare business should not be viewed as something that only happens during AEP. Independent brokers can and should continue to build their business throughout the year when appropriate enrollment opportunities arise. This is why maximizing your opportunities for year-round enrollments, like Turning 65 and Life Insurance, matters.
Renewal Income
The Real Power of Medicare: Renewals
Getting paid for new enrollment is only one part of the Medicare business model.
When eligible clients remain enrolled in future years, brokers may receive renewal compensation.
Example: 300 Active Medicare
Advantage Members
300 Members
|
Approximately $104,000
Annual Renewal Revenue
|
Approximately $8,675
Average Monthly Renewal Income
These numbers are based on the 2026 renewal amount of approximately $347 per active member.
Actual income may vary based on active membership, retention, carrier requirements, and other factors.
Building A Book of Business
You're Not Just Making Sales. You're Building a Book.
The long-term value of a Medicare business comes from consistently adding clients while retaining existing ones. Renewal income generally depends on active membership.
Renewals may stop when a client:
-
Disenrolls
-
Changes carriers
-
Loses eligibility
-
Passes away
Your ongoing renewal income can fluctuate based on:
Retention + Growth + Active Membership
50 Clients
|
100 Clients
|
300 Clients
|
500 + Clients
The goal is not simply your next enrollment.
The goal is building a business that becomes more valuable over time.
Medicare Supplement Commissions
How Medicare Supplement Commissions Work
Medicare Supplement commissions work differently from Medicare Advantage commissions. Unlike Medicare Advantage compensation, Medicare Supplement commissions are generally established by the insurance carrier rather than CMS.
Year 1
20% - 22%
Typical percentage of annual premium
Years 2-6
10% - 12%
Typical Renewal Commission
Commission Advance: Usually based on 12 months of premium.
Typical Renewal Duration: Commonly 12 months of premium
CMS Regulated: No
Carrier Controlled: Yes
Medicare Supplement Plan G
What Could One Medicare Supplement Client Generate?
EXAMPLE PLAN G
Monthly Premium
$180
Annual Premium:
$2,160
YEAR 1 COMMISSION AT 22%
$475
YEARS 2-6 RENEWAL AT 10%
$216 / YEAR
Potential 6-Year Commission
$1,555
This is why many brokers view Medicare Supplement business as a strong long-term renewal asset.
Medicare Broker Commissions FAQ
Frequently asked questions
Want to Build a Medicare Business You Own?
Your Path to Independence Starts Here.
At The Bedrock Group Advisors, we help independent Medicare brokers and agencies build, grow, and scale their business. Whether you're:
New
to
Medicare
Adding Medicare to an existing insurance business
Already independent and looking for stronger support
Building
an
Agency
No matter your stage, we help you navigate the business side of Medicare so you can focus on building something that lasts.
This information is intended for licensed insurance agents and broker education only. It is not intended for Medicare beneficiaries or the general public.
Commission examples are for educational and illustrative purposes only and should not be interpreted as guaranteed earnings. Actual compensation may vary based on carrier, product, effective date, market, state requirements, active membership, retention, eligibility, and other applicable factors.
Agents are responsible for complying with all CMS, carrier, state, and federal requirements.
Ready to Talk?
If you are exploring a new upline or if you simply want to see what a truly supportive FMO looks like, I would love to connect! My name is Jamie Byrd, the Director of Broker Relations and National Recruitment. I will be your go-to support during your time with TBGA. To learn more, book a discovery call today!
