Medicare brokers, such as Boomer Benefits, are paid by the insurance companies they represent. And you pay exactly the same rate for your insurance if you use it. Brokers and agents also often earn higher commissions when selling Medicare Advantage plans than Medigap plans or Part D prescription drug plans. There are several factors that influence the way Medicare agents are paid, such as the type of plan they sell and their performance indicators.
For example, agents often make more money when their customers sign up for more expensive plans. They can also receive higher commissions for selling to new customers rather than for renewals. Therefore, there is a strong incentive for agents to sell as many policies as possible. What you spend on your Medicare policy is already spent on commissions. It's not like other sales-oriented professions, where you're subject to upsells and inflated prices.
Agents get their money from a portion of the monthly premiums you pay. And agents who work for an insurance company also receive a salary. CMS currently sets maximum broker fees annually for Medicare Advantage and Medicare Part D; however, insurance companies are not required to pay these amounts. Nearly one in three people age 65 and older uses one, according to Gretchen Jacobson, vice president of Medicare at The Commonwealth Fund, a health care research foundation. Instead, an insurance agent lets you choose between different Medicare Advantage, Medigap, or Part D prescription drug policies, and then sends you to an agent once you've decided which one to buy.
Most brokers and agents say they would personally prefer traditional Medicare with Medigap over Medicare Advantage plans. Unlike Medicare Advantage and Part D, CMS don't set a maximum commission for Medicare supplement insurance brokers. Medicare insurance agencies can also help beneficiaries compare plans, understand the benefits and costs of plans, and navigate the enrollment process. Medicare plans hire agents and agencies to contact and enroll beneficiaries; in return, agents receive commissions directly from insurers. Simplify your Medicare enrollments by comparing plans side-by-side, filtering plans by preferred doctors, pharmacies and prescription drugs, and more.
In the case of MA and Part D, CMS Medicare marketing guidelines state that these payments “must not exceed the minimum allowed amount or an amount proportional to the amounts paid to a third party for similar services during each of the previous two years”. From the perspective of someone looking for a Medicare plan, fees don't increase the cost of the plan for beneficiaries. First, you have to choose between traditional Medicare (for Medicare parts A and B) and a private insurance company's Medicare Advantage or Part C plan. Virgil Insurance Agency is an authorized and certified representative of the Medicare Advantage HMO, HMO SNP, PPO, PPO, SNP and PFFS organizations and independent prescription drug plans PDP.
These brokerage agencies are authorized and certified by the Centers for Medicare and Medicaid Services (CMS) and work with several insurance companies to provide: beneficiaries a variety of plan options. Each type of Medicare payment is determined by a number of factors, including the beneficiary's income level and health status.
