CMS releases Calendar Year 2016 Agent/Broker compensation guidelines for Medicare Advantage Plans
As you probably know, CMS annually reviews agent/broker compensation for Medicare Advantage, Section 1876 Cost, and PDP plans and provides insurers with maximum allowed commission levels based on their assessment of Fair Market Value (FMV). The good news is that Medicare Advantage plans will be allowed to increase compensation by about 5%, increasing from $408 to $429 for the initial year and from $204 to $215 for renewal years for policies starting in 2016.
It is important to note that these amounts represent maximums insurers are allowed to pay. Individual insurers may choose to pay this amount or less but in most cases, insurers have elected to pay the maximum amounts allowed.