How do health insurance agents get paid?

Health insurance agents earn commissions on premiums, with first-year rates typically higher than renewals. Individual health policies commonly pay 5% to 10% of the first-year premium and 1% to 2% on renewals, while group coverage runs about 3% to 6%. Medicare Advantage compensation is federally capped at fair-market-value benchmarks, with renewal years paid at 50% of fair market value and referral payments capped at $100 per MA referral and $25 per PDP referral.