CMS released the 2027 Medicare commission rates on June 1, 2026. The annual memo sets the maximum
fair market value (FMV) that carriers can pay agents and brokers for Medicare Advantage and Part D
enrollments in Contract Year 2027. Part D commissions rose 14%. MA commissions rose roughly 4.5% in
most regions.
If you run commissions for an agency, this memo is not just a paycheck update. It changes the math behind
every payout run you process from AEP forward. Here is what changed, the dates that matter, and what to
update in your commission system now.
What Are The 2027 Medicare Advantage Commission Rates?
For 2027, the national maximum initial commission for Medicare Advantage is $725 per member per year,
with renewals capped at $363. Higher-cost regions get higher maximums. CMS caps renewal compensation
at 50% of FMV, and referral fees stay at $100 for MA plans and $25 for PDP plans.
Source: CMS memo, June 1, 2026. CT/PA/DC initials rose 4.5% year over year. CA/NJ rose 4.4%.
What Are The 2027 Part D Commission Rates?
Part D saw the biggest jump. Initial commissions increased from $114 to $130 per member per year.
Renewals increased from $57 to $65. Both moves are 14% year over year, the largest Part D increase in
recent memory.
Why Did The Methodology Change?
CMS reverted to its pre-2025 calculation methodology after a court ruling went against the agency and the
government chose not to appeal. The practical takeaway: barring another legal challenge, these rates
should hold through all of 2027. You can build your comp models on them.
Three Dates your Finance Team Should Circle
- June 29, 2026. New voluntary CMS reporting fields go live. Carriers can report per-plan compensation
rates and flag plans that pay $0 commission. - July 31, 2026. Hard deadline. Carriers must submit all compensation data to CMS with executive
attestation. No changes after this date. - Before AEP. Carrier compensation data becomes public on cms.gov. Agents and agencies will be able
to see exactly which plans pay what, including the zeros.
What Your Agency Needs to Update Now
New FMV maximums flow downhill. When the top-line rate changes, every split, override, and renewal
calculation underneath it changes too. Here is the checklist:
-
Update rate tables for every carrier and product. Carriers set their own rates at or below FMV, and
they do not all move at once. Plan for a rolling series of rate confirmations between now and AEP. - Recalculate override splits across your hierarchy. A 14% Part D increase changes what every level
of your downline earns. If your splits are percentage-based, confirm the math still pays out the way
leadership intends. - Model renewal revenue against the new 50% caps. Renewal maximums moved with initials. If your
book leans on renewals, this changes your 2027 revenue forecast. - Flag $0 commission plans in your book. Several carriers stopped paying commissions on select MA
and PDP plans. Once the CMS data goes public, your agents will ask which of their policies pay nothing.
Know the answer before they do. - Document everything. Rates above FMV risk federal anti-kickback exposure, for the carrier and for the
books of business underneath it. Clean records are your protection.
Where Agencies Get Stuck
The memo itself takes ten minutes to read. The work it creates does not. Agencies running commissions on spreadsheets face weeks of manual rate updates, one carrier and one product at a time, with every override
formula touched by hand. One wrong cell and an agent gets shorted, or overpaid, and you find out months
later.
Carriers can also adjust their rates at any time, even mid-AEP. The past two years proved it. A commission
system should absorb a rate change in minutes, not require a rebuild.
Comissio loads carrier rate changes into your commission structure once, then applies them across every
agent, level, and payout run automatically. Your agents can see their own numbers in real time, so the 'what
am I getting paid on this plan' calls stop landing on your desk.
The 2027 rates are set. The question is how long it takes your system to catch up. See where your money
actually goes.
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