When do commissions get paid and how does renewals work?
Commissions for MA and Part D enrollments are paid during the year the beneficiary actually enrolls (on whatever payment schedule the organization sets), and only for the months the member is enrolled. Renewal commissions (for years after the initial enrollment year, or when a beneficiary moves to a "like plan type") are paid at 50 percent of fair market value (FMV) starting with contract year 2025.
What the rule says
Timing of payment:
“MA organizations may determine their payment schedule (for example, monthly or quarterly). Payments (including payments for AEP enrollments) must be made during the year of the beneficiary's enrollment.”
“MA organizations may only pay compensation for the number of months a member is enrolled.”
(The Part D text is identical in substance, referring to Part D sponsors — [42 CFR § 423.2274(d)(1)(iii)-(iv)].)
Renewal compensation amount:
“For contract years beginning with contract year 2025, for each enrollment in a renewal year, MA organizations may pay compensation at 50 percent of FMV.”
When renewal compensation applies (list of permitted scenarios):
“MA plans may pay compensation for a renewal year:”
“In any year following the initial enrollment year the beneficiary remains in the same plan; or”
“When a beneficiary enrolls in a new “like plan type”.”
Retroactive adjustments:
“MA organizations must retroactively pay or recoup funds for retroactive beneficiary changes for the current and previous calendar years.”
The Part D sponsor rules mirror these at [42 CFR § 423.2274(d)(3), (d)(3)(i)(A)-(B), (d)(5)(i)].
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.