How Medicare Agents Are Paid
Contracts with Medicare
Insurance companies will typically contract with Medicare to provide health and prescription drug coverage plans and use the agents or brokers to sell these Medicare plans. These agents or brokers can be contracted with the insurance company, or they can be independent agents or brokers.
The agents will receive their first initial payment within the first year of their client having the Medicare plan. They’ll then receive half as much for two years or more if the client keeps the plan or makes a change to enroll in a plan similar to the one they had.
Rules to Follow
In order for an agent or broker to do business with a client, they MUST be licensed in the state that they are conducting the business in and follow the rules on how to market Medicare. They also have to complete yearly training and pass tests based on the knowledge they have learned about Medicare and it’s various parts and plans.
If the agent or broker does not follow these requirements, they take the risk of losing their license.
Need More Information?
At ReLion Insurance Solutions, we take pride in answering all of your questions with honesty and transparency. If you have any further questions about how Medicare agents are paid or want to learn how we can help you find a Medicare plan that works for you, give us a call today!