2027 CMS Agent & Broker Compensation Rates Announced

On June 1, 2026, CMS released the official Fair Market Value (FMV) compensation amounts for Medicare Advantage (MA), Medicare Advantage Prescription Drug (MAPD), and Prescription Drug Plan (PDP) sales for the 2027 plan year.

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The announcement follows the recent federal court ruling that vacated portions of CMS's 2025 Final Rule related to agent compensation and administrative payments. As a result, CMS has reverted to the compensation methodology that was in place prior to the 2025 Final Rule when calculating 2027 compensation limits.

2027 Medicare Agent Commission Rates

Prescription Drug Plans (PDP)

Year-Over-Year Comparison

The most notable increase is in PDP compensation, which rises by more than 14% compared to 2026.

Referral Fee Limits for 2027

CMS also announced updated referral fee limits:

What This Means for Agents

For most Medicare Advantage sales, agents will see compensation increases of approximately 4.4% to 4.6% over 2026 levels. While these increases generally track with CMS's annual FMV adjustment methodology, the larger increase for PDP plans stands out and may create additional opportunities for agents who actively market standalone Part D coverage.

The announcement also provides greater clarity for carriers as they finalize their 2027 compensation schedules and prepare for Annual Enrollment Period planning.

Important Compliance Reminder

CMS requires Medicare Advantage and Part D organizations to submit their 2027 compensation schedules to CMS by July 31, 2026. Carriers will continue to communicate their specific compensation structures and any market-specific updates throughout the summer.

Looking Ahead

The 2027 compensation announcement is one of the first major milestones of the upcoming Medicare selling season. As carriers begin releasing certification details, product updates, expansion plans, and AEP resources, agents should use this time to prepare their contracting, certifications, and marketing strategies for the year ahead.

PSM Brokerage will continue monitoring carrier announcements and CMS updates and will share additional guidance as information becomes available.

2027 CMS Agent & Broker FMV Compensation Summary

• National MA/MAPD Initial: $725
• National MA/MAPD Renewal: $363
• PDP Initial: $130
• PDP Renewal: $65
• MA Referral Fee Limit: $100
• PDP Referral Fee Limit: $25
• Most MA compensation rates increased approximately 4.4%
• PDP compensation increased approximately 14% compared to 2026

Partner With PSM Brokerage for Medicare Growth

As carriers prepare for the 2027 plan year, now is the time to ensure you have the contracts, support, training, and resources needed to maximize your opportunities.

PSM Brokerage helps independent agents and agencies grow their Medicare business with access to leading carrier contracts, personalized mentorship, certification support, marketing resources, enrollment technology, CRM solutions, and dedicated back-office assistance.

Whether you're focused on Medicare Advantage, Part D, Medicare Supplement, or expanding into ancillary products, our team is here to help you build a stronger and more profitable business.

FAQ: 2027 CMS Agent & Broker Compensation Rates

What are the 2027 Medicare Advantage commission rates?

For 2027, the national Medicare Advantage and MAPD initial enrollment commission rate is $725, with renewals at $363. Some markets have higher FMV amounts, including CA/NJ at $902 initial, CT/PA/DC at $816 initial, and Puerto Rico/U.S. Virgin Islands at $495 initial.

How much did Medicare Advantage compensation increase for 2027?

Most Medicare Advantage compensation rates increased by approximately 4.4% to 4.6% compared to 2026 levels.

What are the 2027 PDP compensation rates?

For standalone Prescription Drug Plans, the 2027 initial enrollment compensation rate is $130, with renewals at $65.

Why is the PDP increase important?

PDP compensation increased by 14.04% compared to 2026. That is the largest percentage increase listed in the 2027 compensation announcement and may create more opportunity for agents who actively market standalone Part D coverage.

What are the 2027 Medicare referral fee limits?

CMS announced the following referral fee limits for 2027:

Medicare Advantage Plans: $100
Prescription Drug Plans: $25

When do carriers need to submit 2027 compensation schedules?

Medicare Advantage and Part D organizations must submit their 2027 compensation schedules to CMS by July 31, 2026.

Does this mean every carrier will pay the full CMS FMV amount?

Not necessarily. CMS sets the maximum fair market value compensation limits, but carriers still release their own compensation schedules. Agents should review each carrier’s official commission schedule once released.

For Licensed Agent Use Only.