Medicare consists of Original Medicare (Parts A and B), Part C (Medicare Advantage Plans), Part D (prescription drug plans), and Medicare Supplement plans. All of these plans, other than Original Medicare, are represented by Medicare agents who sell insurance policies under these plans. You may also notice that agents will offer their services to you for free, which can raise the question of, “How are Medicare insurance agents paid?”

Commissions

The short answer is commissions. Commissions are a percentage of the premiums for the policy you purchase from them. The agent is usually paid a set amount for the first year of the plan and a smaller amount for each year the beneficiary renews. These amounts are relatively small, so agents have to enroll many beneficiaries in order to make a good commission.
Agents also usually have to represent several companies in order to make enough. If they meet specific targets, or have an unusually good quarter, they may get a bonus from one or more of the companies they represent. This is relatively rare.

Amounts

Commission amounts for individual agents are generally not shared. For those that have to know, the Centers for Medicare and Medicaid Services (CMS), which runs Medicare, makes the amounts paid by each plan available here.

Have More Questions? We Can Help

At Heritage First, we aim to be completely transparent with our clients so you know what to expect when you choose to work with us. If you are interested in finding a Medicare plan that could work for you, give us a call today.
Heritage First offers insurance products and services. We are not affiliated with Medicare or any other government agency. Insurance products are guaranteed by the financial strength and claims-paying ability of the issuing company.