The Earning Potential of a Medicare Sales Agent

Choosing a career path often boils down to two considerations: passion and earning potential. If you’re passionate about helping others navigate their healthcare options and intrigued by the financial prospects, becoming a Medicare sales agent may be the perfect fit for you. This article will delve into what you can expect to earn in the field of Medicare sales.

Understanding Medicare Sales Compensation

Medicare sales agents are typically compensated in two ways: through initial commissions for enrolling a client in a plan and through renewal commissions for keeping a client on the same plan year after year.

Initial commissions are paid for new enrollees or for beneficiaries switching from one plan to another. For example, if a client switches from a Medicare Advantage plan to a Medicare Supplement plan, the agent would receive an initial commission.

Renewal commissions come into play after the first year of a beneficiary’s enrollment in a plan. If a beneficiary decides to stick with their existing plan, the agent receives a renewal commission. This provides an incentive for agents to maintain relationships with their clients and ensure they’re satisfied with their plan.

The Numbers: How Much Can You Earn?

The earning potential of a Medicare sales agent can be quite significant, but it largely depends on several factors including location, the number of clients, the types of Medicare plans sold, and the agent’s ability to maintain clients year after year.

For Medicare Advantage plans and Part D prescription drug plans, the Centers for Medicare and Medicaid Services (CMS) sets the maximum allowable commission rates. As of 2023, the initial commission for a Medicare Advantage or Part D plan is roughly $601 per enrollee in most states, while the renewal commission is about $301.

When it comes to Medicare Supplement plans (Medigap), the commission rates are not regulated by the CMS. Therefore, these rates can vary. Some states may see initial commission rates between 15-20% of the plan’s premium, with renewal rates between 10-15%.

Given these rates, let’s consider an example. Suppose in a year, you as an agent enroll 100 beneficiaries in a Medicare Advantage plan and 50 beneficiaries in a Medigap plan with an average premium of $150/month. Your initial commission for the year could be around $51,000 for Medicare Advantage and $13,500 for Medigap, totaling $64,500. In the following years, if those beneficiaries stay on their plans, you would earn a renewal commission, increasing your income potential.

Remember, these are rough estimates, and actual earnings can vary based on multiple factors.

Increasing Your Earning Potential

Successful Medicare sales agents often adopt several strategies to increase their earning potential. These include:

  1. Growing their client base: The more clients you have, the higher your potential income. This can be achieved through marketing efforts, referrals, and networking.
  2. Diversifying the products they sell: Selling a variety of Medicare products (like Advantage, Part D, and Medigap) can help cater to a wider range of client needs, thus increasing potential sales.
  3. Maintaining strong client relationships: By ensuring your clients are satisfied and sticking with their plans, you can secure renewal commissions and bolster your income over time.

A career as a Medicare sales agent can be financially rewarding and also provide the satisfaction of helping others navigate their healthcare needs. As with any career, success comes with time, effort, and a dedication to understanding and serving your clients.

Understanding the Medicare Sales Cycle: Key Selling Periods for Insurance Agents

Navigating the Medicare sales environment can be complex. As a Medicare Sales Agent, understanding the different times throughout the year when you can compliantly sell Medicare plans is crucial. This knowledge allows you to optimize your sales strategy and provide beneficiaries with the best advice on their healthcare options. This article will guide you through the key periods for selling Medicare plans.

Annual Enrollment Period (AEP)

The Annual Enrollment Period, often referred to as the AEP, is the most significant time of the year for Medicare sales. Running from October 15th to December 7th, this period allows beneficiaries to make a multitude of changes to their Medicare coverage. This includes switching from Original Medicare to a Medicare Advantage plan, changing from one Medicare Advantage plan to another, or joining or switching Medicare Prescription Drug Plans.

As a sales agent, the AEP is a time of high activity where you can assist beneficiaries in evaluating their current plans, compare them with other available options, and help them make any desired changes.

Open Enrollment Period (OEP)

The Open Enrollment Period, or OEP, runs from January 1st to March 31st. During this period, individuals enrolled in a Medicare Advantage plan have a one-time opportunity to:

  • Switch to a different Medicare Advantage plan
  • Drop their Medicare Advantage plan and return to Original Medicare

This period does not allow for Part D changes unless it accompanies a change back to Original Medicare. As an insurance agent, you can assist beneficiaries in reviewing their Medicare Advantage plans to ensure they’re fully satisfied or aid in transitioning to a different plan if needed.

Special Enrollment Periods (SEP)

Special Enrollment Periods (SEPs) are specific periods when beneficiaries can make changes to their Medicare coverage outside of the regular enrollment periods. SEPs are triggered by certain events or changes in circumstances such as moving to a new location, losing current coverage, or qualifying for Medicaid.

Understanding the different SEPs allows insurance agents to provide accurate advice and assistance to beneficiaries who may need to adjust their Medicare coverage due to unexpected life changes.

Initial Enrollment Period (IEP)

The Initial Enrollment Period is a seven-month period around a beneficiary’s 65th birthday (three months before, the month of, and three months after) during which they can initially sign up for Medicare. Agents can use this period to educate individuals who are new to Medicare about their options and guide them in choosing the appropriate coverage.

General Enrollment Period (GEP)

The General Enrollment Period, from January 1st to March 31st, is for individuals who did not sign up for Medicare Part A and/or Part B during their Initial Enrollment Period. Coverage does not start until July 1st of that year, and late enrollment penalties may apply.

By understanding these key selling periods, you can align your sales strategies with the Medicare sales cycle, thereby ensuring your clients get the right plan at the right time. Always remember, as a Medicare Sales Agent, you play a crucial role in helping beneficiaries navigate the Medicare landscape, and staying informed is key to providing the best possible service.

Ready to Sell: A Crucial Milestone for Medicare Sales Agents

Becoming a Medicare Sales Agent presents many opportunities for individuals interested in healthcare, insurance, and sales. However, before you can start selling Medicare plans, there’s a critical step to accomplish – becoming ‘Ready to Sell’ (RTS). This term is common in the Medicare sales industry, but what does it truly mean, and why is it so important? This article will delve into these questions and provide an insightful understanding of the RTS status.

Understanding ‘Ready to Sell’

The ‘Ready to Sell’ (RTS) status is a confirmation from an insurance carrier that an agent has fulfilled all the necessary prerequisites and is officially authorized to sell their Medicare products. This term often comes into play during the Annual Enrollment Period (AEP) for Medicare plans, which runs from October 15 to December 7 each year.

Achieving RTS status is not a one-time event but a yearly requirement for all Medicare sales agents. It ensures that agents are up-to-date with the latest products, plan changes, and regulatory requirements.

How to Become ‘Ready to Sell’

While specifics can vary between carriers, the RTS process typically involves three main steps:

1. Contracting and Appointment: The first step to becoming RTS is to contract with the insurance carrier and get appointed. This involves an application process, signing a contract, and often a background check.

2. Licensure and Certification: An agent must hold a valid and active health insurance license in the state where they plan to sell Medicare plans. Additionally, they must pass the AHIP (America’s Health Insurance Plans) certification, a standardized Medicare training program accepted by most carriers. Some carriers may also require you to complete their proprietary certification program.

3. Product Training: Finally, an agent must complete the carrier’s product-specific training, which provides detailed information about the different Medicare Advantage, Medicare Supplement, and Prescription Drug Plans that the carrier offers.

Once these steps are completed and approved by the carrier, an agent is officially ‘Ready to Sell’ and can start marketing the carrier’s plans to Medicare beneficiaries.

The Importance of ‘Ready to Sell’

The RTS process is not just a formality. It plays a crucial role in maintaining the quality of service and ensuring compliance in the Medicare industry. It makes sure that all Medicare sales agents are up-to-date with the latest information and are equipped to provide the best service to Medicare beneficiaries. This knowledge directly contributes to the agent’s success and their ability to help clients navigate the often-complex landscape of Medicare plans.

Furthermore, compliance with RTS requirements is legally mandated. Selling Medicare plans without achieving RTS status can lead to fines, termination of contracts, and even loss of licensure. Therefore, every Medicare Sales Agent must take the RTS process seriously and ensure they achieve this status each year before the Annual Enrollment Period.

In conclusion, becoming ‘Ready to Sell’ is a fundamental step in a Medicare sales agent’s career journey. While it may seem like a hurdle, it ensures agents are knowledgeable, reliable, and compliant, and ultimately contributes to their success and credibility in the industry. As a Medicare Sales Agent, always keep yourself updated and informed, ready to provide the best service possible to your clients.

Get Contracted and Appointed to Sell Medicare Plans

You must complete a contract with each insurance company in order to be appointed to sell.  For example, if you want to sell Medicare plans with Aetna, Cigna, and Anthem, you’ll need to complete a contract with each of those entities through your FMO.

Below is a checklist of what most insurance companies will require to become ready to sell:

  • Copy of your current resident and non-resident state health insurance license
  • Copy of your current E&O policy
  • Completed legal questionnaire provided by the insurance company (you will get this from your Medicare FMO)
  • Consenting to a background check
  • Passing annual certification exam specific to that carrier. This is going to be specific to Medicare Advantage Plans and Prescription Drug Plans, however more and more Medicare Supplement companies are starting to implement certifications as well.

The time this process takes will depend the number of carriers you intend to broker for your clients.

Medicare is highly regulated and many of the carriers have different contracting and appointment processes to get their agents ready to sell (RTS).  You will need to be patient during this process as it can take some time to get your approvals from each company.

Most insurance carriers require their certifications to be passed annually prior to the upcoming Medicare annual election period (AEP). Ask your immediate upline to to learn how to get certified to sell Medicare advantage plans, they will give you detailed instructions for each carrier.

Choosing a Medicare FMO

Choosing a Medicare FMO: An Essential Guide for Independent Agents

Navigating the Medicare market can be complex, especially during the annual enrollment period (AEP). For independent agents and insurance agents engaged in Medicare sales, partnering with a reliable Medicare Field Marketing Organization (FMO) is imperative. A Medicare FMO provides support, helping you enhance your book of business while efficiently servicing the senior market.

The Role of a Medicare FMO

A Medicare FMO, a subtype of insurance FMO, is sanctioned to distribute various health plans, including Medicare Advantage and Medicare supplement insurance. Independent insurance agents contracted with these organizations gain access to sell top Medicare products from different insurance carriers. Beyond facilitating the sale of Medicare supplements and Medicare Advantage plans, they offer an array of insurance products, broadening your portfolio.

FMO Services for Independent Agents

Services offered by FMOs are extensive. For agents in the Medicare market, agent support is provided through various means, including webinars and marketing materials, crucial for those in the insurance business. Lead programs are often initiated by the FMO to assist agents in acquiring new clients, while the release policy of many FMOs allows for open release, giving agents flexibility.

These organizations also support captive agents and independent agents alike, offering tools like a quoting tool and referrals, which are essential for expanding one’s Medicare sales. IMOs, or Insurance Marketing Organizations, often work closely with FMOs, providing additional support and resources for agents.

Training and Support

Training provided by the FMO to Medicare agents is integral to understanding the nuances of products like Medicare health plans and prescription drug plans. The training often includes no-cost webinars and FAQs sessions to address common concerns and challenges faced by agents in the field.

Partnership with Insurance Companies

A robust Medicare FMO will have partnerships with leading insurance companies, such as Cigna. This collaboration allows agents access to a variety of health insurance products, including life insurance and other insurance related to the senior market.

Frequently Asked Questions (FAQs)

What is a Medicare FMO?

A Medicare Field Marketing Organization (FMO) specializes in distributing Medicare-related insurance products. It provides support and resources to insurance agents, helping them sell Medicare Advantage, Medicare Supplement Insurance, and other related health plans efficiently.

How does an FMO get paid?

FMOs earn through commissions, typically received from insurance carriers for every policy sold by agents under their network. They might also earn bonuses based on the volume and performance of the insurance products sold.

What’s an FMO?

An FMO, or Field Marketing Organization, is a company that partners with insurance carriers to distribute various insurance products through a network of agents. They offer support to these agents in terms of training, lead generation, marketing materials, and more.

What is an IMO or FMO?

An IMO is an Insurance Marketing Organization. While both IMOs and FMOs provide support to insurance agents, IMOs primarily focus on life insurance products. FMOs, on the other hand, typically have a broader focus, dealing with health, life, and other types of insurance products.

What does FMO stand for?

FMO stands for Field Marketing Organization.

What is the difference between an IMO and FMO?

The main difference lies in the types of insurance products they specialize in. IMOs primarily deal with life insurance products, while FMOs have a broader range of products, including health and life insurance. Additionally, FMOs often offer more extensive support and resources for agents selling Medicare and health-related products.

What does an FMO do?

An FMO supports insurance agents in selling insurance products by providing them with necessary resources, training, and access to various insurance carriers. They help agents build and grow their book of business while navigating through the complexities of the insurance market. FMOs also facilitate the partnership between agents and insurance carriers, ensuring a smoother process for selling and distributing insurance products.


For those looking to make a mark in Medicare sales, selecting a Medicare FMO that offers comprehensive support for independent agents is crucial. From providing essential training to facilitating partnerships with top insurance carriers, these field marketing organizations play a pivotal role in an agent’s success in the insurance business. Ensure to opt for an FMO that supports your growth in the competitive Medicare market.


Complete and Pass AHIP Medicare Training

Now that you are a licensed insurance agent, your eligibility to sell Medicare is based on passing another test with 90% or better.  This is the annual Medicare training and certification through America’s Health Insurance Plans (AHIP).

It is important to understand that selling certain Medicare products requires special certification as determined by the Center for Medicare and Medicaid Services (CMS). CMS regulates Medicare plans, the insurance companies, agents, and agencies who sell them.

AHIP certification usually begins in late June or early July for the following Medicare plan year.

For example, if you take your certification exam in late June or July 2023, you are likely being certified to sell the 2024 product to eligible seniors during the 2024 annual enrollment period.

The annual AHIP certification exam comes with fee of $175 each year. However, we offer a $50 AHIP discount.

Insurance Licensing

Getting Licensed to Sell Medicare

To become a Medicare insurance agent, you must first get a health insurance license in the state you currently live in (this is called your resident state health insurance producer license).  You can use the link below for WebCE to obtain your study material needed before you scheduled your insurance exam.

Aside from being a requirement, you will receive the fundamental training essential for you to understand how health insurance plans work, including original Medicare, Part C, Medicare supplement plans (also called medigap plans), and part d plans.

Here are some of the important areas of study a prospective sales agent will find in the health insurance license process:

  • Deductibles
  • Co-insurance
  • Claims adjudication and how it affects health plan members’ access to care
  • Networks such as PPO, HMO, and Fee-for-Service
  • Healthcare laws
  • Professional ethics and compliance

There are several vendors who offer health insurance license training, and many states may require specific hours of study prior to taking the health insurance exam.  There are two potential requirements you’ll need to meet to get your health insurance license to sell Medicare.

Study Courses for Health Insurance License

Some states require and offer classroom training with a seasoned licensed health insurance agent who prepares you for the exam. This is a nice option by giving you access to someone who can answer questions as you progress through the course. This classroom training takes roughly a week to complete with the goal of passing the exam at the end of the class.

Self-Study Health Insurance License Preparation

Some states offer self study instead of courses.  If you would rather study on your own time, there are course options in book and electronic formats. This allows you to learn at your own pace. Many of these types of courses give you access to a licensed individual via an 800# or web chat.

Once you pass your state health insurance exam, you are officially certified to sell health insurance products in your resident state once the testing center transmits your successful test score to the state.  That process typically takes a few days

It is worth noting that many health Insurance exam vendors offer a life insurance certification at the same time you are preparing for your health certification. While having a life license is not required to sell Medicare products, it is a good idea to have this license under your belt to provide your client with other insurance product needs down the road.

All you need to do is use a health insurance license vendor and follow the specific details for your resident state.

How to Become a Medicare Sales Agent: A Step-by-Step Guide

Embarking on a career as a Medicare sales agent is an excellent choice for individuals interested in both healthcare and sales. With the right guidance, this rewarding profession is accessible even for those new to insurance. Follow this step-by-step guide to kickstart your journey in Medicare sales.

Step 1: Understand the Role

A Medicare sales agent, also known as a Medicare insurance agent, aids Medicare beneficiaries in navigating various Medicare programs. These programs include Original Medicare (Part A and Part B), Medicare Advantage (Part C), Prescription Drug Plans (Part D), and Medicare Supplement Insurance, often referred to as Medigap. As an agent, your role involves clearly explaining these complex health insurance products, answering any questions, and assisting individuals through the enrollment process.

Step 2: Obtain Your Health Insurance License

The first step to becoming a licensed insurance agent is to obtain your health insurance license. Every state has its specific requirements, but generally, you must complete a pre-licensing course and pass a licensing exam. The course will provide you with a comprehensive understanding of insurance principles, healthcare policies, ethics, and state-specific laws. Once the course is complete, you’ll take the health insurance exam. Upon passing, you can apply for your health insurance license through your state’s Department of Insurance.

Learn More about licensing.

Step 3: Acquire AHIP Certification

With your state license in hand, your next step is to earn your AHIP (America’s Health Insurance Plans) certification. The AHIP certification ensures you’re up-to-date with the latest Medicare regulations, which is crucial to providing accurate and reliable services to beneficiaries. The certification process involves a proctored online exam of 50 questions, and a minimum score of 90% is required to pass.

Learn more about AHIP.

Step 4: Appointments with Insurance Carriers

As a Medicare sales agent, you will be representing the products of various insurance carriers. This means that you need to be appointed by the insurance carriers whose products you wish to sell. Typically, this process involves completing an application and contract with each insurance company. After submission, they’ll conduct a background check before approval.

Learn more about contracts.

Step 5: Complete Medicare Training

After securing appointments with insurance carriers, they’ll usually require you to complete their carrier-specific Medicare training. This training is vital to understanding the unique features and benefits of the different Medicare Advantage plans, Medicare Supplement plans, and prescription drug plans you will be selling.

Step 6: Start Selling Medicare Products

Now it’s time to put your knowledge into action and start selling Medicare products. You can reach out to potential beneficiaries through a myriad of strategies including referrals, in-person meetings, or digital channels. It’s important to maintain transparency and professionalism in all interactions to ensure successful enrollment during the Annual Election Period (AEP).

Step 7: Engage in Continuing Education

The healthcare industry, especially Medicare, is a field that’s constantly evolving. As a dedicated Medicare sales agent, your learning journey continues well beyond obtaining your license and certification. It’s crucial to stay updated with industry news, changes in Medicare regulations, and adjustments to existing plans. Participate in continuing education courses, webinars, and workshops to remain informed and effective in your role.

Becoming a Medicare sales agent is an exciting career path that combines the dynamics of sales training with the essential nature of healthcare. Although it demands commitment and constant learning, it provides the opportunity to make a significant impact on the lives of Medicare beneficiaries.