Quick answer: for 2026, CMS set the national maximum Medicare Advantage commission at $694 per enrollment for the initial year and $347 per year for renewals — a 10.9% increase over 2025. Part D (PDP) pays up to $114 initial / $57 renewal. Higher-cost states get more: California's maximums are $864 initial / $432 renewal. These are CMS "fair market value" (FMV) caps — carriers can pay less, but never more.
The 2026 rates
- Medicare Advantage — national: $694 initial (cycle-year 1) · $347 renewal (year 2+)
- Medicare Advantage — California: $864 initial · $432 renewal
- Part D (PDP) — national: $114 initial · $57 renewal
A few things to understand about how these numbers actually work:
- CMS sets the ceiling, carriers choose the payout. Most major MA carriers pay at or near FMV, but they aren't required to.
- "Initial" doesn't always mean your first sale. The initial rate applies to a beneficiary's first year in any MA plan (their compensation cycle-year 1). If you move someone who's already been in an MA plan, you're generally paid a renewal-level "replacement" amount, not the full initial.
- Renewals pay as long as the client stays enrolled — and as long as you remain the agent of record with an active appointment and current certifications. This is how Medicare agents build real income: 300 renewing clients at $347 is over $100,000 a year before you write a single new application.
Chargebacks: the fine print that bites
If a client disenrolls within the rapid disenrollment window (first 3 months), the carrier claws back the entire commission. Disenrollments later in year one are pro-rated — you keep the months they were enrolled. Two habits protect you: sell the right plan the first time (check doctors and drugs before you submit), and do a 30-day follow-up call so buyer's remorse comes to you instead of to 1-800-MEDICARE.
Medicare Supplement is different
Med Supp commissions aren't CMS-capped. Carriers typically pay a percentage of the annual premium (commonly in the 15–25% range for new business, with renewals for 6+ years). On a $2,000/year premium that's competitive with MA money — and Med Supp clients tend to stay put.
What about overrides?
The FMO/IMO you contract through earns an override paid by the carrier on top of your commission — it does not come out of your $694. Any upline that tells you they must "split" your CMS commission is describing a below-street contract; ask for street level. (More in how insurance agent commissions work.)
The takeaway
2026's 10.9% bump is the largest MA commission increase in years, and renewals now stack at $347. The agents who win aren't chasing initials — they're building a renewal book that pays every January whether they sell or not. Certify early (AHIP guide), contract with carriers that pay full FMV, and protect your book from chargebacks.
Want street-level contracts, AHIP support, and a platform that tracks every commission? Apply to Bridgepoint — or estimate your renewal stack with the agent income calculator.