Every June, the Centers for Medicare & Medicaid Services (CMS) publishes updated fair market value (FMV) limits: the maximum amount carriers are allowed to pay independent agents and brokers for enrolling a Medicare beneficiary in a Medicare Advantage (MA) or Medicare Part D prescription drug plan (PDP). For agents planning their AEP production and for FMOs building out next year’s compensation schedules, this single memo sets the ceiling for what’s possible.
CMS released the 2027 figures in a June 1, 2026 memo. Here’s what changed, and what it means if you sell Medicare products through Broker’s Broker.
2027 Medicare Part D Commission Rates
Part D compensation rose meaningfully for 2027, a bigger jump than in recent years.
- Initial enrollment: $130 per member per year, up from $114 (a 14% increase)
- Renewal: $65 per member per year, up from $57 (also a 14% increase)
Because Part D compensation isn’t broken out by region, this rate applies nationwide regardless of where your client lives.
2027 Medicare Advantage Commission Rates
MA compensation is set regionally, and every region saw an increase for 2027, though a smaller one than Part D’s. Here’s the full breakdown.
Connecticut, Pennsylvania, and Washington DC
– Initial: $816 (up from $781, a 4.5% increase)
– Renewal: $408 (up from $391, a 4.3% increase)
California and New Jersey
– Initial: $902 (up from $864, a 4.4% increase)
– Renewal: $451 (up from $432, a 4.4% increase)
Puerto Rico and the U.S. Virgin Islands
– Initial: $495 (up from $474, a 4.4% increase)
– Renewal: $248 (up from $237, a 4.6% increase)
All other states
– Initial: $725 (up from $694, a 4.5% increase)
– Renewal: $363 (up from $347, a 4.6% increase)
Notice the pattern: initial-year compensation is roughly double the renewal rate across every region, and California/New Jersey continues to carry the highest cap in the country, a reflection of higher administrative and cost-of-living factors CMS builds into the regional formula.
Referral Fees Are Unchanged
If your agency pays referral fees to non-licensed staff or other referral sources, those caps didn’t move for 2027: $100 per referred MA enrollee and $25 per referred PDP enrollee, the same limits carriers have used for several cycles now.
What This Means for Your Business
A few practical takeaways as you plan for AEP:
Renewal income keeps compounding. With MA renewal rates now at $363 to $451 depending on region, a healthy retained book becomes a larger and larger share of steady annual income the longer you stay in the business. This is one of the strongest arguments for staying with an FMO that helps you protect persistency instead of just chasing new sales.
Part D got a bigger raise than MA this cycle. A 14% jump in Part D compensation, compared to roughly 4.4% to 4.6% for MA, is worth factoring into how you allocate selling time this AEP if you write both product types.
These are ceilings, not guarantees. CMS sets the maximum a carrier is permitted to pay. Your actual contract level with Broker’s Broker, and how it compares to street level, determines what you’re actually paid up to that cap. If you haven’t reviewed your contract levels against the new 2027 figures, now is a good time.
Plan your cash flow around the initial-to-renewal drop. Every client you enroll pays roughly double in year one compared to every year after. Agents who don’t account for that step-down when budgeting can be caught off guard heading into their second AEP.
A Reminder on Compliance
FMV limits are a CMS compliance issue, not just a compensation detail. Carriers found paying above these caps, in cash or in-kind, can face enforcement action, and so can the agents and agencies involved. If you’re ever offered compensation that looks like it’s stretching above these published limits, that’s worth a second look before you sign anything.
Talk to Broker’s Broker About Your 2027 Contract Levels
These figures are the ceiling CMS allows, but where your actual contract lands relative to that ceiling is what determines your take-home. If you want a straight answer on how Broker’s Broker’s Medicare Advantage and Part D contract levels compare heading into 2027, reach out and we’ll walk through the numbers with you.
Source: Centers for Medicare & Medicaid Services (CMS), June 1, 2026 memo on 2027 agent/broker compensation.
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