What happens to my commission if the client disenrolls within three months?
If your client disenrolls within the first three months of enrollment (rapid disenrollment), the plan must claw back the entire commission you were paid, unless the disenrollment falls under one of the listed exceptions.
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.”
“When rapid disenrollment compensation recovery applies, the entire compensation must be recovered.”
However, this does not apply in certain situations. This is a list of exceptions to rapid disenrollment recovery:
“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.”
“A beneficiary's enrollment change is not in the best interests of the Medicare program, including for the following reasons:”
The listed reasons include examples such as other creditable coverage, moving into or out of an institution, death, non-payment of premium, and moving into a 5-star plan, among others [42 CFR § 422.2274(d)(5)(iii)(B) / § 423.2274(d)(5)(iii)(B)].
Whether a specific client's disenrollment qualifies for one of these exceptions would determine whether full recovery applies.
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.