---
title: "How Medicare commissions and overrides work | Topflight"
description: "Base commissions, 50 percent renewals, referral fees, overrides by level and how to read a statement, using CMS 2027 maximums and Topflight’s schedule."
url: https://topflightagent-demo-v2.pages.dev/how-medicare-commissions-work
dateModified: 2026-10-05
---

# How Medicare commissions and overrides work

Agent education

Four numbers decide what a Medicare application pays: the CMS base commission, the renewal, the referral fee and the override. Here is how each one works in 2027.

01

## The base commission

CMS sets a maximum initial commission for Medicare Advantage each year by region, and carriers pay agents up to that maximum. For 2027 the national maximum is $725 for a new enrollment and $363 for a renewal. California and New Jersey, Connecticut, Pennsylvania and DC, and Puerto Rico and the Virgin Islands have their own maximums.

| Region | 2026 initial | 2027 initial | 2026 renewal | 2027 renewal | Change |
|---|---|---|---|---|---|
| California & New Jersey | $864 | $902 | $432 | $451 | +4.4% |
| Connecticut, Pennsylvania & DC | $781 | $816 | $391 | $408 | +4.5% |
| National (All Other States) | $694 | $725 | $347 | $363 | +4.5% |
| Puerto Rico & U.S. Virgin Islands | $474 | $495 | $237 | $248 | +4.4% |

Part D is a flat national rate: $130 initial and $65 renewal for 2027, up 14 percent.

Source: [CMS agent and broker compensation, CY2027](https://www.cms.gov/medicare/health-drug-plans/part-c-d/agent-broker-compensation).

02

## Renewals, referral fees and timing

- ◆**Renewals** are capped by CMS at 50 percent of the initial rate and are paid monthly over 12 months. A $363 renewal is $30.25 a month.
- ◆**Initial versus renewal.** A client who is new to Medicare Advantage earns the initial rate; a client switching plans or carriers usually earns the renewal rate. The carrier decides which applies based on the client’s history.
- ◆**Referral fees** remain $100 for Medicare Advantage and $25 for Part D.
- ◆**Chargebacks.** If the client disenrolls within the first three months, the carrier recovers the commission. See the chargebacks guide.
Source: [42 CFR 422.2274](https://www.ecfr.gov/current/title-42/chapter-IV/subchapter-B/part-422/subpart-V/section-422.2274).

03

## Overrides

An override is paid to the agencies above a street-level agent for each application written under them, by level (GA, MGA, SGA, FMO and carrier-specific levels). It is separate from the agent’s base commission. Topflight publishes its full override schedule for 46 carriers, national and California, and marks whether each override is paid by the carrier or by the top of hierarchy.

| UnitedHealthcare, national, 2027 | New | Renewal | Monthly |
|---|---|---|---|
| SMO | $175 | $87.50 | $7.29/mo |
| FMO | $150 | $75 | $6.25/mo |
| MGA | $125 | $55 | $4.58/mo |
| GA | $50 | $35 | $2.92/mo |

[See the full 2027 override schedule](https://topflightagent-demo-v2.pages.dev/agent-commissions).

04

## Reading a commission statement

- ◆**Initial or renewal** tells you which rate applied.
- ◆**Effective date** drives the month the commission is paid.
- ◆**Advanced versus as-earned.** Some carriers pay the full initial up front; others pay monthly. The schedule shows monthly amounts for renewals.
- ◆**Chargeback lines** are negative entries tied to a rapid disenrollment.
- ◆**Missing a policy?** Use the Support Hub’s missing-commission steps; one inquiry per carrier.
Frequently asked

## Questions agents ask about How Medicare commissions and overrides work

**What is the 2027 Medicare Advantage commission?**

**How much is a Medicare renewal commission?**

**What is an override?**

**Who pays the override?**

Last reviewed: October 5, 2026 · Reviewed by Joanna Wyckoff, Founder. Published by the Topflight Data Desk.