How Agents Influence Medicare Beneficiaries Plan Choices

Based on our analysis, the average premium in 2020 for Medigap was $1,660, meaning an agent would be paid $322 for the first year and $166 as a renewal commission. Because premiums and rate adjustments for policies can vary, commissions may shift based on beneficiary, policy, and location. Once a beneficiary is enrolled in an MA or Part D plan, agents earn a commission when the beneficiary switches to a new plan or stays with the original plan. The commission is paid to the agent of record as long as the beneficiary does not have an enrollment submitted to a new insurer by another agent. CMS maximum commission rates are set lower for “switchers” and “renewals” — 50 percent of the first-time commission. For 2022, the maximum national commission for renewals and switches is $287 for MA, with variations in certain markets.

These firms comprise the bulk of the market share and tend to be easier to sell. Ultimately, your product offerings will be dictated by your territory and sales model. To compete well, you’ll need to choose products that are available, competitive, and tailored to fit your customers’ best interests. When you're selling Medicare, you actually have several product options to consider. Carriers will often require you to take product-specific courses alongside your AHIP training. This varies by carrier, as do the specifics of product and compliance training.

PFFS is a private insurance plan that accepts Medicare Beneficiaries. The insurance plan, rather than the Medicare program, decides how much you pay for the services you receive. You may have extra benefits the original medicare agent Medicare Plan does not cover. HMO is a group of doctors, hospitals and other health care providers who agree to give health care to Medicare beneficiaries for a set amount of money from Medicare each month.

To round out the analysis, it was important to seek the beneficiary perspective about the Medicare choice model. The patient advocates with whom we spoke agreed that agents have a role in guiding Medicare choice. In particular, knowledgeable agents can provide meaningful reassurance to beneficiaries considering their options.

Independent agents and brokers are more likely to give unbiased plan recommendations and advice. ‌You can make a difference and a good living by selling Medicare Advantage plans. To get started, you'll need to learn about the different coverage options and rules for eligibility. You'll also need to get licensed, connect with carriers, and complete some training. It is important to understand that selling certain Medicare products requires special certification as determined by the Center for Medicare and Medicaid Services .

You do not enter any information to access and we do not gather any information on you. To cover costs Insurance agents pay AAMSI a nominal fee to be listed on the directory and AAMSI does not screen or vet agents prior to them being posted. Aside from being a requirement, you will receive the fundamental training essential for you to understand how health insurance plans work, including Medicare.