Medicare Agents vs Brokers: Pros, Cons, & How To Choose

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.

One of the key benefits that consumers should know about is that they have a financial safety net, called the maximum out-of-pocket . This helps protect the consumer from unexpected and often expensive events, like a hospital stay. To understand how agents’ business decisions might affect a beneficiary’s plan choice, we simulated an online plan-shopping experience and compared plan choices against the options provided through Medicare.gov. Our analysis shows the important role licensed agents play in shaping Medicare choice for beneficiaries and the extent to which carriers rely on them for growth. It also shows how the agent business model may affect beneficiary choice and overall Medicare literacy.

Further, agents play an important role and share a common interest in ensuring high degree of compliance and adherence to regulations as well as customer satisfaction. Beyond the information that beneficiaries need, advocates also expressed concern about policy changes to Medicare Advantage that do not have equivalents in traditional Medicare. First, Medicare Advantage plans are permitted to offer nonmedical benefits that are medicare agent health-related, such as transportation services and meal delivery. Second, regulations make it easier for beneficiaries to switch into and within Medicare Advantage carriers and plans, compared with switching into a Medicare Supplement policy. You can check with Medicare to find agents and brokers and with your state insurance department to verify the license status of someone who claims to be an insurance agent or broker.

The demand for Medicare Advantage and Medicare Supplement insurance plans is large now and will only continue to grow. Now is the time to capitalize on this amazing explosion of growth in the Medicare industry and start selling Medicare Insurance as an Independent Insurance Agent. During the past several years, CMS has made significant strides to improve the beneficiary experience and the breadth of resources and tools available to understand Medicare and beneficiaries’ options. These efforts, with continued and direct patient and user feedback, should continue as more beneficiaries rely on online tools for information and guidance. Enrollees are unprepared for trade-offs related to benefit selection (i.e., traditional Medicare + Medicare Supplement + Part D vs. Medicare Advantage + Part D). Onboarding into Medicare requires beneficiaries to make decisions that result in trade-offs they are not likely to fully understand.

Yet beneficiaries have limited ability to gauge the caliber of their agent, as there is no systematic or transparent way either for them or plans to avoid a bad actor. Often, friends or family can provide a referral to an agent, but in other cases it is up to the beneficiary to screen agents. Our Scorecard ranks every state’s health care system based on how well it provides high-quality, accessible, and equitable health care. Agents work on a commission based on the Medicare policies they sell.

Many of these types of courses give you access to a licensed individual via an 800# or web chat. A Medicare sales career can be very rewarding personally, professionally, and financially as it allows you the ability to build strong relationships and help a lot of people. We offer a wide variety of plans to ensure there is a good fit for each beneficiary you meet with.