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.
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.
| Market | Initial Enrollment | Renewal |
|---|---|---|
| National | $725 | $363 |
| Connecticut, Pennsylvania, District of Columbia | $816 | $408 |
| California, New Jersey | $902 | $451 |
| Puerto Rico & U.S. Virgin Islands | $495 | $248 |
| Plan Type | Initial Enrollment | Renewal |
|---|---|---|
| PDP | $130 | $65 |
| Market | 2026 Initial | 2027 Initial | Increase |
|---|---|---|---|
| National | $694 | $725 | 4.47% |
| CT, PA, DC | $781 | $816 | 4.48% |
| CA, NJ | $864 | $902 | 4.40% |
| Puerto Rico | $474 | $495 | 4.43% |
| PDP | $114 | $130 | 14.04% |
The most notable increase is in PDP compensation, which rises by more than 14% compared to 2026.
CMS also announced updated referral fee limits:
| Referral Type | Maximum Amount |
|---|---|
| Medicare Advantage Plans | $100 |
| Prescription Drug Plans | $25 |
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.
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.
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
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.
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