How Do Medicare Insurance Brokers Get Paid? (And Why It Doesn’t Cost You Extra)

When you meet with a Medicare insurance broker, one of the first questions on your mind might be: “How much are you going to charge me?”

It’s a fair question—and an important one. After all, if someone is helping you make a big financial and health-related decision, you deserve to understand how that person is compensated and whether their advice is truly in your best interest.

Here’s the short answer: Medicare insurance brokers are paid by the insurance companies—not by you.

Let’s break that down.

🧾 Who Pays the Broker?

When a licensed Medicare broker helps you enroll in a plan—whether it’s a Medicare Advantage plan, a Supplement (Medigap) plan, or a Part D drug plan—the insurance company you enroll with pays the broker a commission. That commission is set by the insurance company and is regulated by the Centers for Medicare & Medicaid Services (CMS).

💡 Does That Commission Affect Your Premium?

Nope. Not at all. Whether you work with a broker or enroll directly with the insurance company, your monthly premium is the same. The broker’s commission is already built into the plan’s pricing model. So, in reality, you’re paying for broker help even if you don’t use one.

That’s why it makes sense to work with someone who can explain the fine print and help you make a confident, informed choice.

🤝 What’s the Difference Between Captive and Independent Brokers?

This is where it gets interesting.

Captive brokers only sell products from one insurance company. That means their recommendations are limited to a single carrier’s offerings.

Independent brokers (like me) are contracted with multiple insurance companies. That gives me the flexibility to shop across plans and find the one that best fits your needs—not just the one that pays the most.

✅ Are Brokers Incentivized to Push One Plan Over Another?

It’s a common concern—and a good one to ask. Most major carriers pay fairly similar commissions for similar products. Still, a trustworthy broker should be transparent about how they’re paid and focus on finding the right coverage for your health needs, lifestyle, and budget—not just chasing the biggest paycheck.

Personally, I take pride in educating my clients, comparing options side by side, and building long-term relationships—not one-time transactions. If a plan isn’t right for you, it’s not right for me either.

🧭 Why This Matters to You

When you're navigating Medicare, it helps to have a guide—someone who knows the plans, understands the enrollment windows, and can explain why one plan fits your needs better than another. And since using a broker doesn’t cost you anything extra, it’s one of the smartest decisions you can make.

So, the next time someone asks, “How do brokers get paid?”—you’ll know the answer: By helping you make a better decision, not by adding to your bill. And that’s how it should be.

Book your free consultation today.