What is a street-level Medicare commission?

The base commission the individual writing agent earns per enrollment — the CMS-set maximum for that product and state. For MA it's $694 initial / $347 renewal in most states on 2026 rates.

Why was my Medicare commission lower than expected?

Most likely proration. CMS pays the full initial only for January effective dates; for later months you earn a prorated share and pick up the rest as a renewal next year.

What is the difference between initial and renewal commission?

The initial is your one-time year-one payment; the renewal pays every year after as long as the client stays, with no new sale. Renewal is 50% of the initial maximum.

Do Medicare agents get paid every year?

Yes — as long as your client stays enrolled, you earn a renewal every year. This residual income is why experienced agents value renewals.

Why do Medicare commission rates change every year?

CMS resets the national maximums annually, so always use the current year's schedule.

Who pays Medicare agent commissions?

Commissions originate from the CMS schedule; depending on contracting they're paid by the carrier or routed through your upline agency, but the street-level amount is the CMS maximum for that state and product.

Pillar Guide · 9 min read

How Medicare Agent Commissions Really Work (2026 Guide)

If you are brand new to selling Medicare, commissions can feel like a black box. You write an application, and weeks later some amount of money shows up — and you are not totally sure how it was calculated, when the rest is coming, or what happens next year. Let's fix that.

The one big idea: you get paid twice (and then again, and again)

Most jobs pay you once. Medicare pays you for the same client year after year. When you enroll someone in a Medicare Advantage plan, you earn an initial commission in year one. Then, as long as that client stays on the plan, you earn a renewal commission every year after — without re-selling anything. The first sale is the down payment. The renewals are the wealth.

What the government sets — and what it doesn't

For Medicare Advantage and Part D, the maximum commission is set by the federal government (CMS), not the carrier. Every carrier pays the same CMS maximum for a standard MA enrollment in a given state. That is the "street-level" rate — no competitor can secretly out-pay another for the base enrollment.

Here are the 2026 street-level rates for Medicare Advantage and D-SNP:

State group	Initial	Renewal
Most states (FL, TX, GA, NC, SC, TN, OH, and all not listed below)	$694	$347
California, New Jersey	$864	$432
Pennsylvania, Connecticut, Washington DC	$781	$391
Puerto Rico	$474	$237

These are the numbers used in our commission calculator.

Why your first-year check is almost never the full amount

Medicare Advantage plans run on a calendar year. If a client's plan starts in January, you earn the full initial. If it starts later, CMS pays you a prorated share for the months remaining — and you pick up the rest as a renewal next year. It feels like a cut. It's a timing shift.

Initial vs. renewal — and why the pros obsess over renewals

Your initial is a one-time event per client. Your renewal is recurring — it pays every year the client stays, for zero additional selling. That renewal river turns a job into a business. Protect your book: a client who lapses costs you every future renewal, not just this year's.

So how much can you actually make?

Write 4 MA apps a week in most-states territory ($694 initial) — roughly 200 apps a year. On initials alone that's meaningful income, and every client you keep adds $347 to next year's renewal base before you make a single new call. Model your exact numbers in the calculator.

Why the schedule changes every year

CMS resets the maximums annually (2026 was a notable increase). Always work from the current CMS schedule.

The bottom line

You get paid an initial in year one and a renewal every year after.
CMS sets the MA/PDP maximum — the same street-level across carriers.
Your first-year check is often prorated by effective month.
The real wealth is in renewals and retention.
Rates change yearly — always use the current CMS schedule.

Frequently asked questions

On 2026 CMS street-level rates, a Medicare Advantage enrollment pays $694 initial in most states and $347 renewal each year after. California and New Jersey pay $864 / $432. These are CMS-set maximums, the same across carriers.