2018 CMS Medicare Advantage and Part D Broker Commissions
CMS recently released the annual updated agent and broker compensation limits for Contract Year (CY) 2018. The annual memo also provides requirements for Medicare Advantage organizations, Prescription Drug Plan sponsors, and Section 1876 Cost Plans (herein after “organizations”) to use in developing their curricula for training and testing agents and brokers for CY 2018.
The compensation amount paid to an independent agent or broker for an enrollment must be at or below the fair market value (FMV) cut-off amounts published yearly by CMS. Increases in the maximum allowable FMV by CMS does not mean that Medicare Advantage plans will automatically increase the commission paid to brokers for 2018, only that they are allowed to increase compensation to the maximum FMV defined by CMS for 2018.
The CY 2018 FMV cut-off amounts for all organizations are as follows:
|
MA and Section 1876 Cost Plans |
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|
Compensation Type |
National | Connecticut, Pennsylvania, District of Columbia |
California New Jersey |
Puerto Rico, U.S. Virgin Islands |
||||
| Contract Year |
2017 |
2018 | 2017 | 2018 | 2017 | 2018 | 2017 |
2018 |
| Initial Year |
$443 |
$455 | $498 | $511 | $553 | $567 | $304 |
$312 |
| Renewal Years |
$222 |
$228 | $249 | $256 | $227 | $284 | $152 |
$156 |
|
PDPs |
||
| Contract Year |
2017 |
2018 |
| Initial Year |
$71 |
$72 |
| Renewal Years |
$36 |
$36 |
Details on the CY 2018 CMS training and testing requirements for CY 2018 may be found at:
