Straight Answers About Medicare
How Do Medicare Brokers Get Paid?
Learn how insurance-company commissions work, what CMS regulates and why transparent compensation should support—not determine—a recommendation.
You normally do not pay the broker
When I help a client enroll in a Medicare Advantage, Medicare Supplement or Part D plan, the insurance company may pay Thompson Medicare Brokerage a commission.
I do not charge clients a consultation or enrollment fee. For the same plan and effective date, using my help does not add a broker fee to the plan’s premium.
The most important fact: CMS limits compensation for Medicare Advantage and standalone Part D plans, but it does not guarantee that every company or plan pays an independent broker the same amount. A carrier may pay the permitted maximum, pay less, or designate a plan as noncommissionable.
Medicare Supplement commissions work differently and can vary by company, state, product, premium and contract.
How compensation works for each type of Medicare coverage
Original Medicare
Original Medicare is administered by the federal government. A broker does not receive a commission for helping someone enroll in Medicare Parts A and B through Social Security.
Medicare Advantage
The private insurance company may pay an initial or renewal commission. CMS regulates and limits these payments, but an individual plan may pay less than the maximum or no commission.
Standalone Part D
Part D drug-plan compensation is also regulated by CMS. Some standalone drug plans pay commissions, while others may suspend or eliminate compensation for new enrollments.
Medicare Supplement
Medigap compensation is commonly calculated as a percentage of premium, although the rate and payment period vary by carrier, state, product and broker contract.
2026 Medicare Advantage and Part D commission examples
The amounts below are CMS fair-market-value limits for 2026. Missouri and Illinois fall within the national Medicare Advantage region.
| Coverage type | 2026 initial maximum | 2026 renewal maximum | Important qualification |
|---|---|---|---|
| Medicare Advantage or MAPD | Up to $694 in Missouri and Illinois | Up to $347 | This is a maximum, not a required payment. The actual amount can be lower or zero. |
| Standalone Part D plan | Up to $114 | Up to $57 | A carrier can make some or all of its Part D plans noncommissionable. |
| Medicare Supplement | Varies | Varies | CMS does not use the same Medicare Advantage and Part D commission schedule for Medigap policies. |
| Original Medicare Parts A and B | No plan commission | No plan commission | Enrollment is handled through Social Security and the federal Medicare program. |
CMS updates its Medicare Advantage and Part D compensation limits annually. You can review the agency’s current and historical data on the official CMS Agent Broker Compensation page .
A commission is not necessarily paid only once
Initial compensation
An initial payment may apply during the first year of an enrollment or when a beneficiary makes certain changes between unlike plan types.
Renewal compensation
A smaller renewal payment may be made in later years if the client stays enrolled or makes certain changes between like plan types. Under CMS’s general structure, the renewal limit is approximately half the initial amount.
Commission chargebacks
If an enrollment is canceled, changed or ends early, some or all of the broker’s payment may be reversed. That is commonly called a chargeback.
A responsible broker should not recommend that someone remain in unsuitable coverage merely to preserve a renewal payment or avoid a chargeback. Your healthcare needs come before the broker’s compensation.
“Agent” and “broker” are often used interchangeably
Captive or single-company representative
A captive representative generally works for, or is limited to, one insurance company. That person can explain the company’s products but cannot necessarily compare them with competing carriers.
Independent agent or broker
An independent professional can contract with multiple insurance companies. That provides a wider comparison, but it still does not mean the broker represents every company or every plan available in a beneficiary’s area.
The titles agent and broker do not, by themselves, prove that someone is independent or unbiased. Ask which companies the person represents, whether every plan being considered pays commission and how the recommendation was developed.
Using Thompson Medicare does not add a fee to your plan premium
What you pay
- The premium established for the insurance policy
- Applicable deductibles, copays and coinsurance
- Your Medicare Part B premium, when required
- No separate Thompson Medicare consultation fee
- No separate Thompson Medicare enrollment fee
What the insurance company may pay
- An initial enrollment commission
- A smaller renewal commission in later years
- A carrier-specific Medigap commission
- No commission when a plan is noncommissionable
- Possible payment reversal if enrollment ends
The premium for an identical insurance plan does not become higher because Benjamin helped with the enrollment. The broker’s compensation comes from the insurance company’s distribution and servicing arrangements.
Can compensation influence a recommendation?
The possibility should not be dismissed
Compensation can vary among coverage types, insurance companies and individual plans. The Medicare industry also includes captive call centers, independent agencies, large online brokerages and plans that pay reduced or no commission.
That creates a potential financial incentive, which is precisely why a beneficiary should ask direct questions and expect direct answers. “Insurance companies pay me” is true, but it is not the entire explanation.
Some plans pay nothing
A plan can be a good fit even if it is noncommissionable. Compensation status should never replace an actual review of doctors, prescriptions, costs, benefits and coverage rules.
Higher commission does not mean better coverage
A larger payment to an agent does not tell you whether your hospital is in network, your medication is covered or the plan fits your healthcare needs.
No commission does not mean a bad plan
Noncommissionable plans are not automatically worse. It simply means the insurer is not paying—or is no longer paying—a broker for that enrollment.
The plan comparison should begin with you—not the commission
Coverage details I review
- Your doctors, specialists and preferred hospitals
- Your prescriptions, dosages and preferred pharmacies
- Premiums and estimated annual out-of-pocket costs
- Provider networks and referral requirements
- Prior authorization and coverage restrictions
- Travel, snowbird and out-of-area coverage needs
- Medigap underwriting and guaranteed-issue rights
Your broader situation matters too
- VA, TRICARE or retiree health benefits
- Medicaid or Medicare Savings Program eligibility
- Extra Help with prescription costs
- Employer or union coverage
- Expected procedures and ongoing treatment
- Your budget and tolerance for unpredictable costs
- Whether you value flexibility or added benefits most
Thompson Medicare’s role is to be an expert problem solver, not a salesman. Sometimes the right answer is Medicare Advantage. Sometimes it is Original Medicare with a Medicare Supplement and Part D plan. Occasionally, the right answer may be to keep existing coverage or use an option that does not pay a commission.
The work should continue after enrollment
A broker earns trust through service—not simply by submitting an application.
Detailed plan comparison
Reviewing providers, prescriptions, pharmacies, costs and coverage rules before an application is submitted.
Year-round problem solving
Helping clients understand bills, network problems, prior authorizations, coverage decisions and available appeal pathways.
Annual coverage reviews
Checking for changes to premiums, benefits, networks and formularies instead of assuming last year’s plan remains the best fit.
Prescription assistance
Comparing pharmacies and drug coverage and identifying programs that may reduce eligible clients’ prescription expenses.
Advocacy and escalation
Helping clients identify the correct carrier department, gather information and understand the next step when something goes wrong.
A consistent point of contact
Giving clients someone familiar with their situation instead of forcing them to restart with a different call-center representative each time.
How to evaluate any Medicare agent or broker
- Which insurance companies are you appointed to represent?
- Do you represent every plan available in my county?
- Are any plans you are showing me noncommissionable?
- How did you verify my doctors and prescriptions?
- What are the plan’s network and prior-authorization rules?
- Will you help me after the enrollment is complete?
- Will you review my coverage again next year?
- What happens if my preferred option does not pay you?
- Are you independent or limited to one insurance company?
- Can I see the plan’s official documents before enrolling?
Medicare broker compensation FAQ
Is a Medicare broker really free to use?
Thompson Medicare does not charge clients for Medicare consultations or plan enrollment assistance. An insurance company may pay the brokerage if you enroll in a commissionable plan.
Will my premium increase if I use a broker?
No additional Thompson Medicare fee is added to your policy premium. For the same plan and coverage effective date, the plan premium does not increase simply because a broker assisted with enrollment.
Do all Medicare Advantage plans pay the same commission?
No. CMS establishes maximum permitted compensation amounts, but carriers can pay less or designate a plan as noncommissionable. The maximum also varies in certain geographic regions.
Do all Part D plans pay brokers?
No. Some standalone Part D plans pay a regulated commission, while others pay reduced or no compensation. Compensation can also change from one plan year to the next.
How are Medicare Supplement brokers paid?
Medigap carriers commonly pay a percentage of the policy premium. The percentage, renewal period and payment schedule vary by company, state, policy and broker contract.
Does a more expensive Medigap plan pay a larger commission?
It can when compensation is calculated as a percentage of premium, but commission rates and contracts differ. Premium, rate history, household discounts, underwriting and long-term suitability should all be considered.
Does Benjamin get paid if I keep Original Medicare?
There is no insurance-plan commission for Original Medicare Parts A and B. A carrier may pay compensation if you separately enroll in a Medicare Supplement or standalone Part D policy.
Can a broker represent every Medicare plan?
Usually not. Independent brokers contract with multiple companies but may not represent every carrier or every plan in a county. Medicare.gov and 1-800-MEDICARE can provide information about all available options.
Can I ask whether a particular plan pays commission?
Yes. Compensation is a reasonable question, and you should expect a straightforward answer. CMS also publishes plan-level independent agent-and-broker compensation data.
What if the best plan for me does not pay a commission?
The compensation status does not determine whether a plan fits your healthcare needs. Thompson Medicare’s comparison focuses on coverage, providers, prescriptions, costs and your complete situation.
Learn more before choosing your coverage
Get a Medicare comparison built around your needs
Benjamin Thompson will review your doctors, prescriptions, preferred hospitals, budget and existing benefits before discussing plan options. You can also ask directly how any plan being considered compensates the brokerage.
Missouri: (417) 420-1807 | Illinois: (217) 661-2332