💼 Understanding How Medicare Brokers Get Paid — And Why It Matters to You

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🧭 Medicare Broker vs. Medicare Agent — What’s the Difference?

These terms are often used interchangeably, but they carry distinct meanings:

• ✅ A Medicare broker (like Thompson Medicare Brokerage) works on behalf of Medicare beneficiaries — meaning I represent you, the client. My goal is to help you understand your options and choose the plan that best fits your needs.
• 🏢 A Medicare agent, in contrast, typically refers to someone who represents a specific insurance company or plan. Their loyalty is to the carrier they work for, and they may be limited in the plans they can offer or recommend.

💡 As a broker, I am licensed to represent multiple carriers and plans. That means I’m not tied to any one company — I’m tied to you. Learn more about Agents vs Brokers here.

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💰 How Are Medicare Brokers Paid?

I am paid by the insurance companies — not by you. Here’s how compensation typically works:

🏥 Medicare Advantage Plans (Part C):

All Medicare Advantage plans pay brokers the same standardized commission, set annually by CMS (Centers for Medicare & Medicaid Services). This means:

• 📦 I receive the same payment no matter which carrier or plan you choose.
• ⚖️ There is no financial incentive for me to recommend one Medicare Advantage plan over another.

✅ My recommendations are based entirely on what fits your needs — not on who pays more.

➕ Medicare Supplement (Medigap) Plans:

Medigap plans operate differently. Instead of a flat rate, they pay brokers a percentage of your monthly premium. That means:

• 💳 Higher premium plans may result in slightly higher broker compensation.
• 📉 However, Medigap commissions are usually lower overall than those of Medicare Advantage, especially in the first year.

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🔍 Why Medicare Advantage May Pay More — But Also Demands More

Yes, Medicare Advantage plans can pay more over the course of a year, but they also require far more hands-on support. That includes:

• 📞 Ongoing customer service
• 📝 Annual plan reviews and renewals
• 🧑‍⚕️ Helping with provider network or access issues
• 🧾 Navigating billing, appeals, or prior authorizations
• 🙋‍♂️ Advocacy when problems arise

Medigap plans tend to be simpler once in place — especially when paired with a standalone Part D drug plan — and usually don’t require as much follow-up.

👉 In the end, the extra service Medicare Advantage plans require balances out the higher compensation.

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🎯 The Bottom Line: You Come First

At Thompson Medicare Brokerage, I believe the best plan is the one that best meets your needs — regardless of how I’m compensated.

My mission is to:

• ✅ Educate you clearly
• ✅ Match you with the right coverage
• ✅ Support you throughout the year — not just at enrollment

If you ever have questions about how we’re paid or how we make our recommendations, just ask. We’ll always answer with honesty and transparency. 🤝

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👋 Have Questions?

📲 Contact me today to schedule your free Medicare review — no cost, no pressure, just honest help

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🤝 Why It All Comes Back to Trust

Navigating Medicare isn’t just about comparing plan details — it’s about understanding who’s helping you make those decisions and how they’re getting paid. At Thompson Medicare Brokerage, I believe transparency builds trust. Whether it’s Medicare Advantage or Medigap, my job is to guide you based on what’s best for you — not based on who pays me more.

From checking your doctors and prescriptions to coordinating VA or Medicaid benefits, I’m here to provide honest, year-round support — no matter how simple or complex your needs are.

If you’re still researching, I invite you to browse more of my Medicare articles or visit the Broker Services page to see how I advocate for my clients beyond enrollment.

And when you’re ready to talk, let’s connect. We’ll go beyond coverage basics and have a real conversation about your health, lifestyle, and budget — so you can feel 100% confident in the plan you choose.