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. There is a significant increase in compensation for 2023.
These new rates reflect, roughly, a 4.9% increase in both initial and renewal compensation for MA and Cost Plans. Puerto Rico and the US Virgin Islands have an increase closer to 4.3%. For PDPs, there is a 5.7% bump on initial and 4.5% bump on renewal commissions. CMS also reaffirmed the standard referral fee limitations for MA/PDP plans at $100/$25, respectively.
Plan sponsors were reminded that compensation schedules must be submitted by 11:59 pm ET, July 20, 2022.
CMS also reminded plan sponsors of their obligation to ensure 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 Cornerstone Senior Marketing.