How Much Can Insurance Agents Make Selling Medicare? | Ritter Insurance Marketing

If you’re considering selling Medicare, you probably want to know how much you stand to gain from it. we’re covering the basics, including how working with an fmo can affect your commissions, to give you a good idea!

With the continued upward march of medicare advantage enrollment, 2023 looks like another fantastic year for record sales, which is good news for agents looking to earn more commissions! Let’s get straight to the facts and figures.

Reading: How do medicare insurance agents get paid

how much does an insurance agent earn from medicare sales?

Generally speaking, agents earn two types of commissions for selling medicare plans: a flat dollar amount per request (medicare advantage and prescription drug plans) or a percentage of the premium sold (medicare supplements). ).

medicare advantage and part d commissions

Agents who sell Medicare Advantage and Part D plans get a fixed dollar amount per application. this comes to them in the form of initial commissions and renewal commissions. Operators pay upfront commissions when an agent makes a new sale or when the payee signs up for a new “different” plan (different type). each year and beyond, providers pay renewal fees to the agent if the beneficiary remains enrolled in the plan or enrolls in a new “similar” plan (of the same type).

For 2022, the national maximum broker compensation for major sales is $573 for initial sales and $287 for renewals. The 2022 National Maximum PDP Broker Compensation is $87 for initial sales and $44 for renewals. by 2023, brokers’ national maximum compensation for core sales will increase to $601 for initial sales and $301 for renewals. National maximum broker compensation for 2023 pdp sales will be $92 for initial sales and $46 for renewals.

Please note that if you are selling a Medicare MSA plan, you may benefit from commissions on both MA and PDP plan types! (Medicare MSAS does not include prescription drug coverage, so you can sell a PDP with those MA plans.)

the centers of medicare & Medicaid Services (CMS) annually sets maximum broker fees for Medicare Advantage and Medicare Part D; however, insurance companies are not required to pay these amounts. what you earn for medicare advantage and pdp sales could be less, depending on the provider and your contract with them.

medicare supplemental commissions

By selling Medicare Supplements, agents earn a percentage of the premiums on the policies they sell. Unlike Medicare Advantage and Part D, CMS does not set a maximum broker commission for Medicare Supplements. these commissions also vary from one carrier to another and from one contract to another.

medicare potential commission calculator

our expert staff has developed possible medicare commission calculators for 2022 and 2023, mapd and pdp maximum broker commissions, medicare msa and medicare supplement for street level agents in all states except ct, pa, dc, ca, nj and pr. The 2023 calculator also includes potential cross-sell profits. If you haven’t sold Medicare products before, this is a great way to see the immediate opportunity you’d have to offer Medicare plans to your current book of business. You can also calculate your potential mapd residual commissions to get an idea of ​​your lifetime value.

See also: How to Get Health Insurance

Download the 2022 Medicare Potential Fee Calculator Template

Download the 2023 Medicare Potential Fee Calculator Template

Note: Fees, especially Medicare supplemental fees, have many variables, including insurance company, plan, state, and other enrollment-specific details. this calculator is just to give agents an idea of ​​your earning potential.

commissions with fmo vs. without fmo

Carriers pay agents for the business they write, even if those commissions go through a fmo first (scroll down for a note on assigned commissions). It is important for agents to know that carriers pay agents and financiers separately. Your relationship with an FMO is comparable to your clients’ relationship with you. you don’t pay anything to the fmo, just as your clients don’t pay you anything. you earn your commissions from the carrier, just like the fmo earns its override from the carrier.

so what you earn working with a fmo is no less than what you would earn working without one. in fact, we believe you have the potential to earn more commissions with an fmo! there is a lot of value in the training and administrative support an fmo can provide to agents with licensing, recruiting, leads, marketing co – op, sales tools, business presentation, supplies, commission tracking software, etc., that extra support could lead to more sales. In addition, many fmos usually offer agencies higher commissions than those on the street.

read more about the benefits ritter offers agents like fmo

a note on ‘assigned commissions’

often, an agent who works with an fmo will receive commissions directly from the carrier. In select cases, an FMO may want agents to “assign” their commissions to them (eg, if they provide the agent with leads, advances, etc.). in others, the carrier may require agents to allocate their commissions to their fmo (eg, the carrier only pays for direct contracts). When you assign your commissions to the FMO, this means that the carrier will pay the FMO, who will then pay you. Agents who sign a commission transfer contract should be careful, as depending on their contract, their upline could keep their renewals if they decide to leave.

Note: In cases where you are required to sign a commission assignment agreement with ritter, it is an vested agreement, meaning any money you earn is yours.

earn more with medicare

We would like to highlight one of the advantages that ritter offers here, because we are so confident that it can help you earn more that we think it deserves a discussion. Medicareful is Ritter’s exclusive CMS-compliant quoting and enrollment software that’s free and easy to set up and use. Streamline your Medicare Advantage and Part D enrollment by collecting scopes, comparing plans side by side, and quickly shipping preloaded applications to customers. instead of submitting applications through different online platforms, simplify your process and maximize your profits with medicareful.

turnkey marketing strategies

In addition to making enrollment easier and smoother, Medicareful can be a powerful marketing tool, generating more leads and therefore more sales. When you get your own Medicare site, you’ll receive a custom URL that you can scatter in printed marketing materials. For example, if your name were Susan Jones, your URL might look like www.medicareful.com/susanjones. your medicareful page will be branded with your name and contact information. Not only do we provide you with a Medicare URL, but we can also print personalized Medicare marketing materials for you, saving you time that you could use for more sales. head over to shopritterim and check it out!

See also: How Many Accidents Before Insurance Drops You? – Insurance Panda

Want to drive traffic to your site and stay top of mind with your customers? link to and share content from ritter’s regularly updated medicareful living blog through its website, emails, and social media platforms. When you follow the instructions in the ritter docs, anything you share from the blog will connect to your medicareful site.

affinity associations

medicareful also makes it easy to generate leads through affinity partnerships. Your partners will like the fact that Medicareful is CMS compliant and turnkey, meaning they don’t need to keep any records or paperwork on your end. all they need to do is allow you to display your medicareful materials for your customers to pick up.

Check out these step-by-step instructions on how to take advantage of Medicare in your community!

note: To access the instructions linked in this section, you must be a registered agent with ritter. sign up for free today!

save time, earn more

Overall, Medicareful will make your life easier and your business run better. you could save time (and gas!) by running appointments remotely. You’ll save time by sending pre-filled applications and enrolling your Medicare Advantage and Part D customers through one platform. and saving time means having time for more appointments. we all know where this leads: more appointments means more sales! then head here to get your site for free if you haven’t already!

Hesitant to try something new? We have a dedicated Medicareful team ready to answer your questions!

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Selling Medicare can be very lucrative, if done right. I hope you now have a better idea of ​​how much medicare agents can earn and know that working with an fmo should never hurt your commissions, only help them grow!

Do you want to join or change fmos? here is a list of 10 things you should consider!

Editor’s Note: This article was originally published in October 2020. It has been updated to include information more relevant to the 2023 Annual Enrollment Period.

See also: How Do Hospitals Get Paid? A Primer – The New York Times