Let's set the stage
Medicare commissions are two different worlds. Medicare Advantage (MA) and standalone Part D (PDP) are federal programs, so CMS controls how much an agent can be paid through 42 CFR 422.2274 for MA and the matching Part D rule. Medicare Supplement (Medigap) is a state regulated product, so the carrier sets the commission schedule within state rules. If you do not keep those two worlds separate in your head, your revenue projections will be wrong.
How MA and Part D commissions work
The federal rule says MA organizations "may pay compensation at or below FMV," where FMV is the fair market value amount CMS updates every year. The structure looks like this:
- Initial year. When a member enrolls in a plan type for the first time, the carrier may pay up to the full FMV amount.
- Renewal years. For each year the member stays, the carrier may pay up to 50 percent of FMV.
- Like plan type changes. When a member moves to a new plan of the same type, for example MA to MA, the rule treats it as a renewal and the carrier may pay renewal level compensation, not a new initial payment.
- Rapid disenrollment. If a member leaves within the first three months of enrollment, the rule requires the compensation to be recovered. In the field we call that a chargeback.
2027 MA and Part D compensation caps
CMS released contract year 2027 amounts in its June 1, 2026 memo on agent and broker compensation and training and testing. The figures below are as reported from that memo by Ritter Insurance Marketing. These are maximums per member per year; your carrier contract sets what is actually paid.
| Market | MA initial 2027 | MA renewal 2027 | MA initial 2026 | MA renewal 2026 |
|---|---|---|---|---|
| Most states (national) | $725 | $363 | $694 | $347 |
| Connecticut, Pennsylvania, DC | $816 | $408 | $781 | $391 |
| California, New Jersey | $902 | $451 | $864 | $432 |
| Puerto Rico, U.S. Virgin Islands | $495 | $248 | $474 | $237 |
Standalone Part D for 2027 is reported at $130 initial and $65 renewal, up from $114 and $57 in 2026. CMS also posts the actual compensation each plan reports in yearly data files on its agent broker compensation page.
How Medigap commissions work
Medigap commissions are usually a percentage of the premium, paid as long as the policy stays in force, on a schedule the carrier sets and the state allows. Because they are tied to premium, Medigap renewals can grow when rates rise. Here's the thing: each carrier's schedule is different, and some pay differently in the first year, by plan letter, or by age. Read the commission schedule in your contract before you assume anything.
Where agencies and FMOs fit
When you sell through an agency or FMO, the carrier pays according to the hierarchy your contract is placed in. An agency owner can earn overrides on the agents contracted under the agency, and the FMO is paid by the carrier for building and supporting that hierarchy. The split between agency and agent is set by your contracts, not by CMS. If you want to understand how that hierarchy is built, read building a downline and agency vs agent contracting.
Let's be real about the math
A book of renewals is what makes a Medicare agency valuable, and it is why retention matters more than one big AEP. An MA member who stays five years pays one initial and four renewals. A member who leaves in month two pays nothing and may cost you a chargeback. Protect the book. If you are thinking about scale, Seven Figure has training on growing and keeping a Medicare book.
Frequently asked questions
How much does a Medicare agent make per Medicare Advantage enrollment in 2027?
The CMS cap for 2027 is reported at $725 for an initial enrollment in most states and $363 for each renewal year, with higher caps in California, New Jersey, Connecticut, Pennsylvania and DC. The carrier contract decides what is actually paid, up to those caps.
Do Medicare agents get paid every year?
Yes, if the member stays enrolled. Medicare Advantage and Part D carriers may pay renewal compensation of up to 50 percent of the fair market value each year, and Medigap carriers typically pay ongoing commission on premium while the policy stays in force.
What is a Medicare commission chargeback?
Under 42 CFR 422.2274, if a member disenrolls within the first three months, the plan must recover the compensation it paid. Agents usually see this as a chargeback against future commission statements.
Does CMS set Medicare Supplement commissions?
No. Medigap is regulated by the states, and each carrier sets its own commission schedule, usually as a percentage of premium. Check the schedule in your carrier contract.
Sources
Updated October 13, 2026 by the Everything Senior Insurance Data Desk.