A Complete Guide to the Salaries of Medicare Insurance Agents

Written by Matthew King, time it takes to read this article is  minute(s).

How lucrative are the salaries of Medicare insurance agents? Suppose you’re considering becoming a Medicare insurance agent. In that case, you’ll likely want to know the type of compensation you can expect to make.

How much can you expect to make selling Medicare? How do you earn commission? Of course, the answers depend on various factors, which we hope to guide you through as you decide whether it’s the right career for you.

Let’s get started.

The Basics

In broad terms, agents tend to earn two types of commissions selling Medicare plans:

  1. A flat dollar amount per application- which includes prescription drug plans and Medicare Advantage
  2. A percentage of the premium sold- which is for Medicare supplements.

Let’s break this up a little more:

For Medicare Advantage and Medicare Part D plans, agents can expect a flat dollar amount per application. This is both in terms of initial commissions and renewal commissions.

New Plans:

One of the best ways for insurance agents to earn money is when a beneficiary enrolls in a new plan. This means that when you register someone on their very first plan or a plan that is unlike anything they’ve previously had.

When an agent makes a fresh sale or the beneficiary signs up for the first time ever, carriers pay agents an initial commission.

The commission you can earn selling Medicare Advantage and Medicare Part D is regulated by the Centers for Medicare & Medicaid Services (CMS). This is updated each year.

However, it’s essential to bear in mind that the maximum commission amount varies depending on the state and region the plan is in and the insurance provider.

Renewal Plans:

Suppose the beneficiary carries on with the plan you initially sold them. In that case, carriers will pay half of the initial commission (renewal amount) to the agent of record. The same goes for if the beneficiary enrolls in a new “like” plan (which just means the ‘same type’ of plan).

After receiving their first year’s commission, agents tend to receive renewal payments monthly, starting from January. The maximum commission amount for renewals in 2020 was set by CMS at $255 for MAPD enrollments and $39 for PDP enrollments.

Renewals play a big part in the annual income of a Medicare insurance agent. Constant renewals over several years can potentially result in substantial payments.

For example, it’s not uncommon for an agent to have over 1,000 beneficiaries on the books, which yields an annual renewal income of around $270,000.

However, bear in mind that the average agent who has been in the business for five years or so will have about 400 to 500 clients. But still, that is certainly not an amount to scoff at.

On the other hand, Medicare supplements pay you the same initial and renewal commission for the first six years of a policy. After a rate increase, then you can attempt to save your client money and restart your commission.

How Many Sales Can You Make?

Of course, you probably want to earn as much as you can, which means closing the highest possible volume of sales.

However, there’s no magic wand or set amount of sales to be made each year for a salesperson. So the amount of sales a Medicare insurance agent can make dramatically varies.

Several factors contribute to this:


Having the right training behind you can make a big difference in how successful you are as a Medicare insurance agent. In fact, it could be one of the most important steps you make to become a successful Medicare insurance agent.

Why? Because the right training can help you understand the business’s terminology, how commissions work, and marketing strategies and plans. It can also help prepare you to enroll and get started.


This may be considered the most challenging but most crucial part of being a Medicare insurance agent. To be a successful and prepared Medicare agent, you will need a solid marketing plan.


Being a skilled salesperson comes naturally to some. You may have the gift of the gab and be able to breeze through sales pitches, racking up your commission sales along with them.

Or perhaps you need a little boost or direction in how to achieve the best sales. Either way, having or developing sales skills will affect your commission.


An obvious point, but if you put in the hours and the effort, you should be able to rake in that commission. However, you may find you’re putting in the hours without the fruits of your labor.

The Salaries of Medicare Insurance Agents

Bearing in mind all the above, what’s the average salary of a Medicare insurance agent? The answer varies quite significantly.

At the lower end, salaries are around $29,997 to $37,083. At the higher end, wages can be between $49,000-$79,000+, or for an hourly rate, you’re looking at between $14-$22.

Is This for You?

Being an insurance agent isn’t for everyone. However, for some, the job is just right for them. Whether you have the proper training behind you or the perfect charisma, undertaking this career can be a lucrative move to make.

The salaries of Medicare insurance agents vary greatly depending on whether you have an effective marketing plan and how long you’ve been in the business. Hopefully, the above has indicated the potentially lucrative nature of this career.

If you would like to find out more about how to kickstart your new career, sign up today. Our friendly team will happily point you in the right direction!

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