Let’s be honest: if you’re thinking about becoming a Medicare agent, one of your first questions is probably:
“Can I actually make good money doing this?”
The short answer is yes — but it doesn’t happen overnight, and it’s not passive from day one.
A lot of agents struggle early because they don’t fully understand how commissions actually work in the Medicare world.
So today, let’s break down the real numbers behind Medicare agent income potential, especially for independent agents, and talk about what you can expect as a new agent — the good, the tough, and the long-term reward.
💰 Let’s Talk Commissions (No Hype, Just Facts)
Medicare Advantage and PDP (Prescription Drug Plan) sales are paid by CMS-regulated commissions. In 2025, here’s how it works for most states:
- Initial Commission (Plan-to-Plan Sale): ~$698 annually
- Renewal Commission (Monthly): $26.08 per month per active client
- Proration Applies — More on that below 👇
📆 Why Commissions Can Feel “Slow” at First
Here’s something that surprises a lot of new agents:
If you sell a Medicare Advantage plan in August with a 9/1 effective date, you don’t get the full $698. You get a prorated portion — in this case, roughly 33% of the full commission, since the policy only covers 4 months of the year.
➡️ That means instead of $698, you’d earn about $230 for that sale.
It’s totally normal — but it can be tough for new agents who are trying to pay the bills with early commissions. That’s why we’re always honest about it.
🔁 But Here’s the Good News: Renewals Stack Up
The real power of Medicare sales is in the renewals.
As long as your client stays enrolled in their plan, you get paid $26.08/month — every single month.
And that’s per client.
Let’s Do the Math:
- 76 active clients = $1,981 per month in renewals
- Round that up and you’re at $2,000/month in recurring revenue
- No sales required — just service, retention, and compliance
For most agents, that’s rent, groceries, and breathing room covered.
📊 What Do Most Agents Earn Their First Year?
Not every new agent hits 200 sales in Year 1 — and that’s okay.
At TMS, we see a good, consistent new agent average around:
- 100 Medicare Advantage or PDP sales in Year 1
- With the right support, they build up to 150–200 sales by Year 2 or 3
- Many agents continue to grow their book while maintaining strong retention
That means even if you’re “only” writing 2–3 apps a week, you’re still setting up future recurring income that pays out month after month.
🧠 Want to Succeed? Understand These Variables:
Income in Medicare isn’t one-size-fits-all. It depends on:
- How many effective policies you write (and when in the year)
- Your client retention — if people stay on their plans, you keep getting paid
- The support you have — training, follow-up systems, and tech like OmniReach
- Your ability to market consistently — TMS agents can get up to $900/month in reimbursements for compliant marketing
🙌 Final Thought: The Struggle Is Temporary — The Renewals Are Freedom
There’s no sugar-coating it: the first few months as a Medicare agent can be tight.
You’re working hard, and your commissions might not feel like they match the grind — especially with proration. But if you stick with it, the renewals kick in and start to change everything.
You go from chasing apps to building reliable monthly income that doesn’t reset every January.