How Medicare Agents Are Paid
You may be wondering how agents are compensated or how they make their money when their services are free. As an independent agency, we can walk you through how this process is done so you can ensure that trust and your best interest are at the forefront of everything we do!
How Do Agents Get Paid?
As an independent agency, we are contracted with several insurance carriers, which allows us to compare each carrier and show you the best deal for the plan you want. However, we are not here to sell you a plan with a specific insurer; we are here to make sure you get the coverage you want at the price you need. We do not work for the insurance companies but for you.
One of the primary ways insurance agents earn money is when a client enrolls in a new plan. Generally, when you are enrolled in a plan, the agent will receive a commission from the insurance company within the first year. If you stay in that plan, they will receive a renewal commission after each year. Some carriers have a lifetime renewal commission, while others have a commission cap after five or six years. The maximum commission for Medicare Advantage and Medicare Part D deals that are payable to specialists are controlled by the Centers for Medicare and Medicaid Services (CMS). They are renewed every year.
This permits the agent to help you discover a Medicare plan without charging you for services.