CMS has officially released the Contract Year (CY) 2027 agent and broker compensation limits, along with several important operational and compliance updates that agents should be aware of heading into the next plan year.
As a reminder, these amounts represent the maximum fair market value (FMV) that carriers are allowed to pay. Carriers are not required to pay the full amount, though many historically do.
Click here to read the full press release from CMS.
| Initial | Renewal | ||||||
| Product | Region | 2026 | 2027 | % | 2026 | 2027 | % |
| MAPD | National | $694 | $725 | 4.47% | $347 | $363 | 4.61% |
| CT, DC, PA | $781 | $816 | 4.48% | $391 | $408 | 4.35% | |
| CA, NJ | $864 | $902 | 4.40% | $432 | $451 | 4.40% | |
| Puerto Rico, U.S. Virgin Islands | $474 | $495 | 4.43% | $237 | $248 | 4.64% | |
| PDP | National | $114 | $130 | 14.04% | $57 | $95 | 14.04% |
Medicare Advantage Maximum Broker Commissions:
In most states, initial Medicare Advantage commissions increase from $694/member/year to $725/member/year, a 4.47% year-over-year (YOY) increase. Renewal commissions increased from $347/member/year to $363/member/year, a 4.61% increase.
Medicare Part D (PDP) Maximum Commissions:
Initial commissions increased from $114/member/year to $130/member/year, a 14.04% increase year over year (YOY). Renewal commissions increased from $57/member/year to $65/member/year, a 14.04% increase.
In addition to standard commissions, CMS will continue allowing plans to offer referral (finder’s) fees in 2027. These payments remain capped at $100 for Medicare Advantage (MA) plans and $25 for Prescription Drug Plans (PDPs), providing agents with an additional way to be compensated for connecting beneficiaries to coverage.
CMS is also placing a stronger emphasis on transparency in agent compensation. For 2027, plans are encouraged to voluntarily report more detailed data, including situations where they pay $0 commission on a specific plan and the exact compensation amounts by plan, rather than just a range. While this information will not be publicly posted, it reflects CMS’s broader effort to increase visibility into how agents are compensated across the industry.
What This Means for Agents:
These updates don’t change how commissions are calculated, but they do signal a shift toward greater oversight and clarity. As carriers finalize their strategies for 2027, agents should expect closer alignment with CMS guidance and should stay informed on how compensation may vary by plan.
Additional Reminders:
Looking ahead, there are a few key compliance items to keep in mind:
- Carriers must submit their compensation structures to CMS no later than July 31, 2026, and those submissions cannot be changed afterward.
- Agents are also required to complete annual training and testing with a minimum passing score of 85%, reinforcing CMS’s continued focus on education and compliance.
- Additionally, CMS has highlighted the importance of easy access to enrollment forms, signaling potential oversight in how plans present enrollment options to beneficiaries.
Together, these updates reinforce CMS’s focus on maintaining fair compensation while improving transparency and the overall beneficiary experience.
The 2027 CMS compensation update reflects steady increases, a consistent structure, and new efforts to enhance transparency through expanded reporting. While compensation limits remain unchanged in how they’re calculated, CMS is encouraging greater visibility into how plans pay agents. Staying informed on how carriers respond will be key to success this AEP.
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At Carolina Senior Marketing, we’re here to help you navigate these updates. Connect with our team today for the latest insights, carrier guidance, and support to grow your business in 2027.
