CMS releases Calendar Year 2017 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 3%, increasing from $429 to $443 for the initial year and from $215 to $222 for renewal years for policies starting in 2017. It is important to note that these amounts represent maximum insurers are allowed to pay. Individual insurers may choose to pay this amount or less. See below for the rates applicable PDPs and to non-standard states.

NOTE: The FMV amounts for CY 2017 are rounded to the nearest dollar. The Initial Year amount is the maximum allowable to be paid for enrollments during compensation cycle-year 1. Therenewal amount is the maximum allowable to be paid for enrollments during compensation cycle-years 2 and beyond.