Agent education
How Medicare commissions and overrides work
Four numbers decide what a Medicare application pays: the CMS base commission, the renewal, the referral fee and the override. Here is how each one works in 2027.
01
The base commission
CMS sets a maximum initial commission for Medicare Advantage each year by region, and carriers pay agents up to that maximum. For 2027 the national maximum is $725 for a new enrollment and $363 for a renewal. California and New Jersey, Connecticut, Pennsylvania and DC, and Puerto Rico and the Virgin Islands have their own maximums.
| Region | 2026 initial | 2027 initial | 2026 renewal | 2027 renewal | Change |
|---|---|---|---|---|---|
| California & New Jersey | $864 | $902 | $432 | $451 | +4.4% |
| Connecticut, Pennsylvania & DC | $781 | $816 | $391 | $408 | +4.5% |
| National (All Other States) | $694 | $725 | $347 | $363 | +4.5% |
| Puerto Rico & U.S. Virgin Islands | $474 | $495 | $237 | $248 | +4.4% |
Part D is a flat national rate: $130 initial and $65 renewal for 2027, up 14 percent.
02
Renewals, referral fees and timing
- ◆Renewals are capped by CMS at 50 percent of the initial rate and are paid monthly over 12 months. A $363 renewal is $30.25 a month.
- ◆Initial versus renewal. A client who is new to Medicare Advantage earns the initial rate; a client switching plans or carriers usually earns the renewal rate. The carrier decides which applies based on the client’s history.
- ◆Referral fees remain $100 for Medicare Advantage and $25 for Part D.
- ◆Chargebacks. If the client disenrolls within the first three months, the carrier recovers the commission. See the chargebacks guide.
Source: 42 CFR 422.2274.
03
Overrides
An override is paid to the agencies above a street-level agent for each application written under them, by level (GA, MGA, SGA, FMO and carrier-specific levels). It is separate from the agent’s base commission. Topflight publishes its full override schedule for 46 carriers, national and California, and marks whether each override is paid by the carrier or by the top of hierarchy.
| UnitedHealthcare, national, 2027 | New | Renewal | Monthly |
|---|---|---|---|
| SMO | $175 | $87.50 | $7.29/mo |
| FMO | $150 | $75 | $6.25/mo |
| MGA | $125 | $55 | $4.58/mo |
| GA | $50 | $35 | $2.92/mo |
04
Reading a commission statement
- ◆Initial or renewal tells you which rate applied.
- ◆Effective date drives the month the commission is paid.
- ◆Advanced versus as-earned. Some carriers pay the full initial up front; others pay monthly. The schedule shows monthly amounts for renewals.
- ◆Chargeback lines are negative entries tied to a rapid disenrollment.
- ◆Missing a policy? Use the Support Hub’s missing-commission steps; one inquiry per carrier.
Frequently asked
Questions agents ask about How Medicare commissions and overrides work
What is the 2027 Medicare Advantage commission?
Up to $725 for a new enrollment and $363 for a renewal nationally, with higher maximums in California and New Jersey ($902 / $451) and Connecticut, Pennsylvania and DC ($816 / $408), and lower in Puerto Rico and the Virgin Islands ($495 / $248).
How much is a Medicare renewal commission?
CMS caps renewals at 50 percent of the initial rate. Nationally that is $363 in 2027, paid monthly as $30.25.
What is an override?
Money paid to the agencies above a street-level agent for each application written under them, separate from the agent’s own commission. Topflight lists its overrides by carrier and level.
Who pays the override?
Either the carrier directly or the top of hierarchy, depending on the carrier. Topflight’s schedule marks which applies to each carrier.
Last reviewed: · Reviewed by Joanna Wyckoff, Founder. Published by the Topflight Data Desk.