How do you make money selling Medicare supplements?
Asked by: Prof. Edythe Huel | Last update: December 7, 2025Score: 4.6/5 (1 votes)
How much money can you make selling Medicare supplements?
$42,000 is the 25th percentile. Salaries below this are outliers. $79,500 is the 90th percentile.
What is the average Medicare Supplement commission?
Medicare Supplement Commissions
The average Medicare Supplement commission rate is 22% with a 12-month advance. The average yearly premium for Medicare Supplement plans is $1,600, which has a renewal rate of $29.33/month. Agents can earn renewal commissions for at least six years.
What license do you need to sell Medicare supplements?
AHIP (stands for America's Health Insurance Plans) certification is accepted by all and required by most carriers if insurance agents want to legally sell Medicare Advantage (MA) or Prescription Drug Plans (PDPs) for the current certification year.
How to get started as a Medicare agent?
- Get pre-licensing education. ...
- Take the licensing exam. ...
- Apply for the Medicare insurance agent license. ...
- Get AHIP training. ...
- Get errors & omissions protection. ...
- Contract with insurance providers. ...
- Build up your insurance business. ...
- Meet the continuing education (CE) requirements.
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How do Medicare agents get paid?
Medicare agents are paid by insurance providers who offer Medicare plans. The insurance providers contract with Medicare agents and agencies to find and enroll beneficiaries, and they compensate the agents by paying commissions on the plans they sell.
How much does it cost to become a licensed Medicare agent?
Agents selling Medicare Advantage or Part D plans must complete AHIP (America's Health Insurance Plans) certification annually. The cost is approximately $175 ($125 with discounts).
How much does it cost to get AHIP certified?
Most insurance carriers require completion of AHIP's yearly certification before they will allow agents to sell their products, and some also require additional carrier-specific training. How much does AHIP certification cost? The standard cost of AHIP certification is $175.
Can you sell Medicare part-time?
You can do it part-time and get there slower, for sure. I know many agents who started selling Medicare Supplements at night after their full-time jobs. I started part-time doing it just two days per week but set those entire days aside to concentrate on this aspect of my business before going full-time.
Why do agents push Medicare Advantage plans?
Why do brokers push Advantage plans so hard? It's money. Sorry, that's the honest truth. The commission for an Advantage plan can be roughly double that of the most popular Medicare supplement plan and it's paid all at one time.
Why is Medicare supplement so expensive?
Demographics – Your age, location, and gender can affect your premium rate for a Medicare Supplement plan. Depending on where you live, you may pay more for your coverage. Age and gender can play a part in pricing, too. For example, women typically have longer life expectancies than men.
What is the average supplement markup?
What is the markup on supplements? The markup on supplements can be substantial, often ranging from 40% to 100% or more, depending on the type of supplement and the brand.
How does an insurance agent get paid?
Agents typically get paid through commissions, which are a percentage of the insurance premium or on a federally regulated standard. This doesn't mean you should always try and sell the most expensive policy. When agents sell a new policy, they earn a higher commission rate compared to when that policy is renewed.
How big is the Medicare supplement market?
The U.S. medicare supplement health insurance market size was estimated at USD 26.97 billion in 2022 and is expected to reach USD 27.90 billion in 2023.
What is the maximum you can make on Medicare?
You are eligible for Medicare when you turn 65 or have a qualifying disability. There is no income limit for Medicare. But some people may have to pay more for their Medicare coverage, while others may be eligible for Extra Help. If your income is above a specific threshold, your Medicare might cost more.
What is the downside to Medicare supplement plans?
There are a couple of cons to consider before choosing a Medigap plan: Premiums: Medigap premiums can be pricey. Coverage: Medicare Supplement plans don't cover everything, so you'd still have to pay out of pocket for things like dental care, vision care and long-term care.
Why are people leaving Medicare Advantage plans?
Among the most commonly cited reasons are excessive prior authorization denial rates and slow payments from insurers.
What is the most popular medicare supplement plan?
There are 10 different types of Medigap policies (labeled A through N), each having a different, standardized set of benefits (Appendix Table 3). Plan G is the most popular Medigap policy, accounting for 39% of all policyholders, or nearly 5.3 million people, in 2023 (Figure 3).
Is AHIP hard to pass?
Many returning Medicare agents say AHIP is easy — once you get the hang of it. Nobody's perfect, especially when learning something new! If you get more questions incorrect than you thought you would, or if you fail your first time taking the final AHIP exam, don't fret. Just study up on those areas a little more.
How long does AHIP Medicare training take?
Is AHIP a timed test? Yes. The final exam is 50 questions, and agents have two hours to complete it. The training modules for each section before the final exam are not timed and may take a few hours to get through if it's your first time reading them.
How does a Medicare advisor make money?
Here at The Medicare Family, if we help you identify a good plan and then enroll you in that plan, we are paid a small commission directly from the insurance company. It's built into the plan's monthly premium, so you'll pay the same whether you get our help or not.
Do Medicare agents work year round?
Maintaining Contact Year-Round
Selling Medicare insurance is a year-round job. Keep your lead generation activities active year-round.
What does a Medicare sales agent do?
This position is responsible for selling Medicare Advantage, Medicare Supplement, Prescription Drug Plan, and other ancillary insurance products to consumers through inbound and outbound leads. This position does not require cold calling. All insurance shopper leads are provided to you.