So how are Medicare agents paid?
Medicare has been promoting the Medicare.gov shopping tool as a way for those turning 65 or those over 65 looking to sign up or change plans. Those that purchase plans through the site would do so without the benefit of a local Agent. Medicare also promotes their SHIP volunteers to help people navigate the complex world of Medicare. Although both are serviceable ways to learn about and purchase plans they cannot replicate a full time agent. Personally, I spend about 60 hours a week in my business and all I do is Medicare and Medicare related products. Every year Agents spend over 100 hours testing and recertifying with their carriers. Many agents like me have the ability to shop every carrier in the Dallas County Market. Medicare regulates how much agents are paid making it easy for agents to make unbiased recommendations on the best plan for their client.. Agents put their clients in the plan that makes the most sense for the client based on extensive experience and knowledge. The best part of all, clients pay absolutely nothing, for in my case more than 8000 hours of experience! That's right, agents charge nothing for their service because the carrier pays them. Whether you buy from the medicare.gov site or a licensed agent you pay the same premium. And finally, agents are paid small increments over the lifetime of their clients they keep so they have tremendous incentive to serve their customers well and continually keep their clients in the right plan, in contrast many insurance products like life insurance agents are typically paid in one large lump sum after the policy is signed. Medicare Agents who are unable to retain clients will not be around for long.