Medicare Agent Commission Rates for 2027

What an agent earns per policy, straight from the CMS compensation memo — the national maximums, the states that pay more, and what the numbers do and don't cover.

$725

MA Initial (national)

$363

MA Renewal

$130

PDP Initial

$65

PDP Renewal

The Short Answer

For 2027, a Medicare Advantage enrollment pays up to $725 the first year and $363 every year after.

Those are the national maximums CMS set for contract year 2027. Five jurisdictions pay more — California and New Jersey at $902, and Connecticut, Pennsylvania and Washington DC at $816. Standalone Part D pays $130 initial and $65 renewal. Every figure on this page comes from CMS’s Health Plan Management System memo Agent Broker Compensation and Training and Testing Requirements CY2027, issued June 1, 2026.

One thing to be clear about: these are ceilings, not promises. CMS caps what a plan may pay; the carrier decides what it actually pays, up to that cap. The money comes from the carrier — not from your FMO.

2027 CMS Maximum Compensation

Per member, per year. "Initial" applies to a new-to-Medicare enrollment and certain qualifying plan changes; "renewal" applies from year two onward, for as long as the member stays enrolled.

Line of Business
First Year
Renewal Years
Medicare Advantage — national
$725 initial
$363 renewal
Medicare Advantage — CA, NJ
$902 initial
$451 renewal
Medicare Advantage — CT, PA, DC
$816 initial
$408 renewal
Standalone Part D (PDP)
$130 initial
$65 renewal

Renewal compensation is set at roughly half the initial amount across every tier. Rates current as of the June 2026 CMS memo for contract year 2027 — CMS republishes these annually, and plans had until July 31, 2026 to submit and attest to their 2027 compensation data.

What Changed From 2026

Medicare Advantage rose from $694 to $725 initial and $347 to $363 renewal — increases of roughly 4.5% and 4.6%. The larger move was in Part D: PDP compensation rose about 14%, the biggest proportional increase of any line CMS caps this year.

For an agent, the practical read is that per-policy economics improved modestly on Medicare Advantage and meaningfully on standalone Part D. Neither change is large enough to alter how you build a book — retention and volume still matter far more than the rate — but a PDP-heavy practice gained real ground.

What These Numbers Don't Tell You

The rate table is the same for every agent in the country. It is set by CMS and it is not negotiable, which means it is one of the few things about an FMO relationship you never have to shop for. What varies — and what actually determines your income — is everything around it.

Whether you're paid the full amount. In most cases an agent is paid directly by the carrier at the carrier's published street-level rate. Some uplines pay below street and keep the difference. The CMS maximum is unchanged either way; what changes is how much of it reaches you.

Whether renewals are vested. A $363 renewal that continues for a decade is worth far more than the $725 that opened it. If your renewals are not vested from day one, or if you lose them by leaving, the rate table is describing income you don't fully own.

What CMS doesn't cap at all. These maximums apply to Medicare Advantage and Part D. Medicare Supplement, ACA, Life, Final Expense, Annuities and Ancillary commissions are set by the carrier with no CMS ceiling — which is why multi-line agents often find their income mix looks very different from the table above.

Chargebacks. Compensation is subject to recovery if a member disenrolls within defined windows. A rapid disenrollment can claw back the initial payment entirely.

Does the FMO take a cut?

At Benefits Life, no. In the vast majority of cases you are paid directly by the carrier at the carrier's published street-level rate. We are compensated separately by carriers through overrides and administrative payments — money that comes from the carrier and does not reduce what you are paid. We have never reduced an agent's commission below street level, and we don't intend to start.

If you are being paid below street level today, that is your upline's decision, not a CMS rule. The maximum is the maximum no matter whose hierarchy you sit in.

Frequently Asked Questions

How much do Medicare agents make per policy in 2027?

For a Medicare Advantage enrollment in 2027, CMS set the national maximum at $725 for a new-to-Medicare enrollment and $363 per year for renewals. A handful of states are higher: California and New Jersey at $902 initial and $451 renewal, and Connecticut, Pennsylvania and Washington DC at $816 initial and $408 renewal. Standalone Part D plans pay $130 initial and $65 renewal. These are maximums set by CMS, not guarantees — the carrier pays the commission, and the amount is set by CMS and the carrier, not by the agent’s FMO.

What is the maximum Medicare Advantage commission for 2027?

$725 for an initial enrollment and $363 for a renewal, nationally. CMS published these in its Health Plan Management System memo Agent Broker Compensation and Training and Testing Requirements CY2027, issued June 1, 2026. That is an increase from $694 initial and $347 renewal in 2026.

How much do agents make on a Part D (PDP) plan in 2027?

$130 for an initial enrollment and $65 for a renewal — an increase of roughly 14% over 2026, the largest proportional rise of any line CMS caps.

Which states pay higher Medicare Advantage commissions?

California and New Jersey are the highest at $902 initial and $451 renewal. Connecticut, Pennsylvania and Washington DC follow at $816 initial and $408 renewal. Every other state uses the national maximum of $725 initial and $363 renewal. CMS sets these higher amounts because fair market value differs by region.

Do Medicare agents get paid renewals every year?

Yes. Renewal compensation continues for as long as the member stays enrolled and the plan remains commissionable. That is what makes a Medicare book an asset rather than a series of one-off sales — and it is why who owns your book, and whether renewals are vested, matters more than the initial commission.

Does the FMO take a cut of my Medicare commission?

It should not. At Benefits Life you are paid directly by the carrier at the carrier’s published street-level rate in the vast majority of cases. FMOs are separately compensated by carriers through overrides and administrative payments, which come from the carrier and do not reduce what the agent is paid. If an FMO is paying you below street level, that is a choice they are making, not a CMS rule.

Are these commission rates the same at every FMO?

The CMS maximums are the same everywhere — they are set by CMS, not negotiated. What differs between FMOs is whether you are actually paid the full street-level amount, whether renewals are vested from day one, and whether you keep your book if you leave. The rate table is identical; the contract around it is not.

The rate is fixed. The contract around it isn't.

Street-level commissions paid directly by the carrier, renewals vested from day one, and a real Open Release policy if it ever stops working. Book a 20-minute call and we'll walk through exactly what you'd be paid and what you'd own.