What causes a commission chargeback, and what happens to my renewal commissions and book of business if I change agencies?
A chargeback happens when a plan recovers compensation it already paid you — mainly for "rapid disenrollment" (a beneficiary changing plans within the first three months of enrollment) or for any other period the beneficiary wasn't actually enrolled while compensation was paid for that time. The excerpts don't address what happens to renewal commissions or your book of business if you change agencies — that's a contractual matter between you and your agency/carrier, not something covered in these CMS sources.
What the rule says
“Compensation recovery is required when:”
“A beneficiary makes any plan change (regardless of the parent organization) within the first three months of enrollment (known as rapid disenrollment), except as provided in paragraph (d)(5)(iii) of this section.”
“Any other time period a beneficiary is not enrolled in a plan, but the plan paid compensation based on that time period.”
There are listed exceptions where rapid disenrollment recovery does not apply (for example, a beneficiary enrolling October–December and then switching for a January 1 effective date during AEP, or moving into a 5-star plan):
“Rapid disenrollment compensation recovery does not apply when:”
“A beneficiary enrolls effective October 1, November 1, or December 1 and subsequently uses the Annual Election Period to change plans for an effective date of January 1.”
On the amount recovered:
“When rapid disenrollment compensation recovery applies, the entire compensation must be recovered.”
“For other compensation recovery, plans must recover a pro-rated amount of compensation (whether paid for an initial enrollment year or renewal year) from an agent or broker equal to the number of months not enrolled.”
Whether a specific disenrollment reason triggers a chargeback would depend on which exception, if any, applies to that beneficiary's situation.
Carrier and FMO rules are often stricter than CMS rules. This tool reports what CMS sources say and is not legal advice. Enrollment guidance shown is the CY 2027 version. Regulation text reflects the CY 2027 marketing rules, which apply to marketing beginning October 1, 2026.
This answer was generated by mapdbot from the sources listed below on October 2, 2026 and checked against them. Regulation text: eCFR as of 09/15/2026. It is for licensed insurance agents, is not legal advice, and does not cover carrier or FMO rules.