2022 MAPD and PDP Commission Changes Announced

The Centers for Medicare & Medicaid Services (CMS) announced the broker compensation rates for the 2022 contract year.

Each year, CMS publishes the fair market value (FMV) amounts for initial compensation, renewal compensation, and referral fees.  

For most of the United States, the Medicare Advantage initial year commission for contract year (CY) 2022 is $573, and renewals are $287.  

PDP (prescription drug plan) commission for 2022 is $87 in the initial year and $44 in renewal years.  

Here’s a quick look at 2022 commissions for most of the U.S.:

• Initial year Medicare Advantage commission: $573
• Medicare Advantage renewals: $287
• Initial year PDP commission: $87
• PDP renewals: $44

Connecticut, Pennsylvania, the District of Columbia, California, New Jersey, Puerto Rico, and the U.S. Virgin Island have different compensation from the rest of the country.

Here’s a chart from CMS showing the MA and Section 1876 Cost Plans:

‍NOTE: CMS rounds the FMV amounts for CY 2022 up to the nearest dollar. The Initial Year amount is the maximum allowable amount that organizations may pay for enrollments during compensation cycle-year 1. The renewal amount is the maximum allowable amount that organizations may pay for enrollments during compensation cycle-years two and beyond for a like plan type.

Related announcements:

• Medicare Plan Finder Changes for Contract Year 2022: What to Expect for AEP
• Webinar: How to Import Client Drug Lists from Medicare.gov to MedicareCENTER