How Medicare Agents Are Paid
Wondering if there's a catch? There isn't. Learn how licensed Medicare agents are compensated and why our guidance is completely free to you.
The Short Answer: Our Help Is Free to You
One of the most common questions we hear from people new to Medicare is: "How much does it cost to use an agent?" The answer is simple — nothing. Our services are 100% free to you, whether you are enrolling for the first time, switching plans, or just need advice.
Licensed Medicare agents are paid by the insurance carriers (the companies that offer Medicare plans), not by the clients they serve. This means you receive expert, personalized guidance without paying a penny more than if you enrolled in the exact same plan on your own.
In fact, federal regulations prohibit Medicare agents from charging beneficiaries any fees for enrollment assistance. The plan you enroll in through an agent costs exactly the same as if you enrolled directly through the insurance company or through Medicare.gov.
How Agent Compensation Works
You Enroll in a Plan
With our guidance, you choose the Medicare plan that best fits your health needs and budget. We handle the paperwork and submit your enrollment to the carrier.
The Carrier Pays the Agent
After your enrollment is confirmed, the insurance carrier pays the agent a commission. This commission is built into the plan's structure and does not increase your premium.
You Pay the Same Price
Your plan costs exactly the same whether you enroll through an agent, directly with the carrier, or through Medicare.gov. There is no markup or extra charge for using an agent.
Understanding Carrier Commissions
Insurance carriers pay agents commissions that are regulated by the Centers for Medicare & Medicaid Services (CMS). Here are some important details:
- CMS sets maximum commission amounts. Each year, CMS publishes the maximum broker and agent compensation amounts that carriers are allowed to pay. This prevents excessive payments and protects consumers.
- Commissions are the same regardless of plan. For Medicare Advantage and Part D plans, the commission an agent earns is generally the same no matter which specific plan you choose. This means your agent has no financial incentive to push one plan over another.
- Renewal commissions are lower. Agents typically earn a higher commission when you first enroll in a plan and a lower renewal commission in subsequent years. This structure incentivizes agents to provide ongoing service and retain clients through quality support, not sales pressure.
- Medigap commissions vary. Medicare Supplement (Medigap) commissions are set by each carrier and can vary. However, your premium remains the same whether you buy directly or through an agent.
Why Use an Agent If It's the Same Price?
Since working with an agent costs you nothing extra, the real question becomes: why wouldn't you? Here's what you get when you work with a licensed independent agent like MAC Insurance:
- Expert plan comparisons. We compare plans from multiple carriers to find the best match for your specific doctors, medications, and budget. Medicare.gov can show you a list of plans, but it cannot explain the nuances of each one.
- Provider and drug verification. We check that your doctors are in-network and your prescriptions are on the plan's formulary before you enroll, so you avoid surprises.
- Enrollment assistance. We handle the application paperwork, ensure your enrollment is processed correctly, and follow up to confirm everything is in order.
- Year-round support. Unlike a website or call center, we are your ongoing point of contact. If you have a billing issue, a claim question, or need to change plans, we are here to help — all year long.
- Annual plan reviews. We proactively review your coverage before each Annual Enrollment Period to make sure your plan still meets your needs and that you are not overpaying.
Independent vs. Captive Agents
Not all Medicare agents are the same. There are two types of agents you may encounter:
Captive Agents
Work for a single insurance company and can only sell that company's plans. They may not be able to show you all the options available in your area.
Independent Agents (That's Us)
Work with multiple insurance carriers and can compare plans across companies. This means we can recommend the plan that truly fits your needs — not just the one that a single company happens to offer.
At MAC Insurance, we are proudly independent. We are contracted with multiple top-rated carriers, giving you access to a wide range of Medicare Advantage, Medicare Supplement, and Part D plans. Our recommendations are based on your needs, not a corporate sales quota.
Consumer Protections
CMS enforces strict rules to protect Medicare beneficiaries from unethical agent behavior. As a licensed agency, we adhere to all CMS marketing and compliance guidelines, including:
- We never charge you a fee for our services
- We never pressure you to enroll in a plan
- We never make unsolicited contact about Medicare plans (all appointments are at your request)
- We always provide accurate, truthful information about plan benefits and costs
- We clearly identify ourselves and the purpose of any meeting or call
- We give you the time and space to make your own decision
Your trust is our most valuable asset, and we take our compliance obligations seriously.
Get Free, No-Obligation Medicare Guidance
Our licensed agents are here to help you navigate Medicare at no cost. Let us compare plans, check your doctors, and find the right coverage for you.