CMS 2023 Agent Broker Compensation Guidelines
By: Chalen Jackson, Compliance Officer
CMS has released the 2023 Agent Broker Compensation Guidelines that govern the maximum allowable first year and renewal compensation for agent level MA and PDP commissions. As in past years, we have seen a significant increase in compensation for 2023.
These new rates reflect a roughly 4.9% increase in both initial and renewal compensation for MA and Cost Plans, though, in Puerto Rico and the US Virgin Islands, the increase is closer to 4.3%. For PDPs, this is a 5.7% bump on initial and 4.5% bump on renewal commissions.
In this notice to plans, CMS also reaffirmed the standard referral fee limitations for MA/PDP plans at $100/$25, respectively. Plan sponsors were reminded that compensation schedules are required to be submitted by July 29, 2022, 11:59 pm EST.
CMS also reminded plan sponsors of their obligation to ensure that agents and brokers selling Medicare products are trained annually on Medicare A, B, C, and D—as well as on plan-specific information. CMS annually publishes the testing and training requirements, including a sample test each year for guidance.
If you have questions about what these compensation changes mean for you, please reach out to your team at Senior Marketing Specialists at 800-689-2800.
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