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How Do Medicare Agents Get Paid?

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By Daniel Petkevich
Apr 12, 2023

Medicare commissions should not affect your choice of plan

They say the best things in life are free, which includes the free Medicare consultations offered by Fair Square. You can speak with one of our licensed Medicare experts and

receive expert advice at no cost.

This might beg the question, “if you are not being paid by clients for your services, how do Medicare agents get paid?” The short answer is Medicare Brokerages are paid via commissions from insurance companies when clients enroll in certain plans. In this blog post, we will talk through how Medicare agents are paid by commission and how we at

Fair Square

separate ourselves from other Medicare brokerages. 

Stay Up to Date on Medicare!

Join the Fair Square Medicare Newsletter to stay informed on cost savings, changes to Medicare, and other valuable healthcare information.

What is a Medicare Brokerage?

A Medicare brokerage, like Fair Square, helps Medicare beneficiaries choose and enroll in Medicare plans. These brokerages are licensed and certified by the Centers for Medicare and Medicaid Services (


) and work with multiple insurance companies to provide beneficiaries with a range of plan options. A brokerage can provide information and guidance on

Medicare Advantage plans

(aka Part C),

Medicare Supplement plans

(aka Medigap), and Part D Prescription Drug plans. Medicare brokerages can also assist beneficiaries in comparing plans, understanding plan benefits and costs, and navigating the enrollment process. Brokerages may receive commissions or fees for their services, which can be paid by insurance companies or by beneficiaries themselves. There are plenty of brokerages out there, so you should pick the one that has your best interest in mind.

How Medicare Agents Get Paid

Licensed Medicare advisors might receive compensation in two different models: commission-based and fee-based models. The former is more typical in the world of Medicare. Insurance companies pay commissions to brokers for enrolling beneficiaries in their plans. Commission rates vary by plan and insurance company. From the perspective of someone shopping for a Medicare plan, commissions do not increase the cost of the plan for beneficiaries. The only impact that you should be aware of is the way commissions might impact the recommendations from a given brokerage (Fair Square does not let commissions impact our recommendation, which we’ll speak more about below).
The other model, the fee-based model, is less common. Similar to a boutique doctor, you might pay a brokerage directly for certain services, like plan analysis or ongoing support. Fees charged to beneficiaries must be disclosed to them before they agree to use the brokerage's services. While some might say this payment might offer more services, these fees may not be worth the expense for some beneficiaries.

Factors That Affect Medicare Brokerage Payment

Several factors can affect the payment received by a Medicare brokerage. One of these factors is the type of plan sold. So different commissions will be paid for Medicare Advantage plans, Medicare Supplement plans, and Prescription Drug plans. Another factor that can impact brokerage payment is the volume of sales. Brokers who sell more plans may be eligible for higher commission rates or bonuses. Additionally, experience and credentials can also play a role in brokerage payment. Brokers who have more years of experience or relevant certifications may be able to negotiate higher commission rates. Finally, geographical location can affect brokerage payment, as commission rates can vary by region. Brokers in areas with higher healthcare costs or more competitive markets may be able to earn higher commission rates.

Why Medicare Beneficiaries Should Care About How Medicare Brokerages Get Paid

The commission-based model is so popular because it means that Medicare beneficiaries can get advice from Medicare experts for free. However, it is up to Medicare beneficiaries to ensure that they are getting unbiased advice that is not influenced by the commission. If you are shopping for Medicare, some other brokerages might let the potential commission affect their recommendation for you. 

Fair Square

, we separate ourselves from other Medicare brokerages because our agents are commission neutral. This means their compensation is the same no matter which plan you choose. We believe it's better business to get you on the best possible plan that you will want to stay with for many years than to try to make money off of our clients with high-commission plans that they will want to switch in a year or two.


At Fair Square, we are an established Medicare brokerage that has been providing free consultations to clients for years. Our team of licensed Medicare agents can help you understand the different types of Medicare plans available and make the best decision for your individual needs. We stand out from other brokerages because our recommendations are commission neutral – meaning no matter which plan you decide to enroll in, our agents will not receive additional compensation. This ensures that you are getting truly unbiased advice from an agent who has your best interests in mind. Call us today at 888-376-2028 for your free consultation today.

Stay Up to Date on Medicare!

Join the Fair Square Medicare Newsletter to stay informed on cost savings, changes to Medicare, and other valuable healthcare information.

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Virgil Insurance Agency, LLC (DBA Fair Square Medicare) and www.fairsquaremedicare.com are privately owned and operated by Help Button Inc. Medicare supplement insurance plans are not connected with or endorsed by the U.S. government or the federal Medicare program. This is a solicitation of insurance. A licensed agent/producer may contact you. Medicare Supplement insurance is available to those age 65 and older enrolled in Medicare Parts A and B and, in some states, to those under age 65 eligible for Medicare due to disability or End-Stage Renal disease. Virgil Insurance Agency is a licensed and certified representative of Medicare Advantage HMO, HMO SNP, PPO, PPO SNP and PFFS organizations and stand-alone PDP prescription drug plans. Each of the organizations we represent has a Medicare contract. Enrollment in any plan depends on contract renewal. The plans we represent do not discriminate on the basis of race, color, national origin, age, disability, or sex. Plan availability varies by region and state. For a complete list of available plans please contact 1-800-MEDICARE (TTY users should call 1-877-486-2048), 24 hours a day/7 days a week or consult www.medicare.gov. © 2022 Help Button Inc

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