How do health insurance brokers get paid?

Health insurance brokers earn commissions set by the insurers they place business with. For individual and family plans, first-year commissions commonly run 40% to 100% of the first-year premium, with smaller amounts in later years. Group health business is often paid per member per month, with small group typically paying more per member than large group. For Medicare Advantage, federal rules cap commissions at fair market value benchmarks, $539 per enrollment nationally, with renewals paid at 50% of fair market value for contract years beginning with 2025.