Ritter Insurance Marketing, Craig Ritter
CMS Announces Maximum Commissions for Medicare Advantage (MA
) and Medicare Part D (PDP) for 2016
The good news for agents is that CMS significantly raised maximum commissions for Medicare Part D (PDP) and, to a lessor extent, Medicare advantage. Note that Medicare advantage and Medicare Part D providers are not REQUIRED to pay the maximum commission rate. The insurance company’s will file their 2016 commission rates in the coming months.
Again, note that the quoted commissions are the CMS MAXIMUM for 2016 and actual 2016 commission could be lower, at the discretion of the plan.
First, for Medicare Part D, initial commissions increased from $56/member/year to $63/member/year, a 12.5% increase YOY.
Replacement commissions for Part D increased from $28/member/year to $32/member/year, a 14.3% increase YOY.
Medicare advantage is broken out by state:
For CA and NJ, initial MA
commissions increased from $510/member/year to $536/member/year, a 5.1% increase YOY. Replacement commissions increased from $256/member/year to $268/member/year, a 4.7% increase.
For CT, PA and DC, initial MA
commissions increased from $461/member/year to $483/member/year, a 4.8% increase YOY. Replacement commissions increased from $230/member/year to $242/member/year, a 5.2% increase.
In all other states, initial MA
commissions increase from $408/member/year to $429/member/year, a 5.1% increase YOY. Replacement commissions increased from $204/member/year to $215/member/year, a 5.4% increase.