Guide
Do Medicare agents charge a fee? How agents get paid
For Medicare Advantage and Part D drug plans, a licensed agent's help costs you nothing, and the plan's price is the same whether you use an agent or enroll yourself. Here's how agents are paid, and the one place the answer depends on your state.
Last reviewed October 26, 2026. General information, not advice about any plan.
The short answer
- Medicare Advantage and Part D
- No fee to you. The agent is paid by the insurance company, and the plan costs the same either way.
- Medicare Supplement (Medigap)
- Agents are usually paid by the insurance company too. Whether an agent may also charge you a fee depends on your state.
- Who pays your premium
- You pay the insurance company (some plans can take it from your Social Security). Never the agent.
How agents are paid
When you enroll in a Medicare Advantage or Part D plan through an agent, the insurance company pays the agent a commission, and usually a smaller renewal payment in later years if you stay. For independent agents, Medicare sets a yearly limit on these payments. Agents who are employees of an insurance company are paid as employees.
Because a plan's premium has to be the same for everyone in it, you don't pay extra for having had help, and you don't get a discount for going without.
Medicare Supplement (Medigap) is different
Medigap policies are regulated by your state, not by Medicare's marketing rules. Insurers pay agents commissions under state law. Fee rules vary by state, so if an agent mentions a fee for Medigap help, ask for it in writing and check with your state insurance department first.
If someone asks you for money
A fee to enroll you in a Medicare Advantage or drug plan, a charge for a "new Medicare card," or a request for your bank details to "hold" a plan are all red flags. Don't pay, and report it to 1-800-MEDICARE and your state insurance department. Our guide to spotting Medicare scams has more.
Common questions
Will I pay more for a plan if I use an agent?
No. A Medicare Advantage plan's premium must be the same for everyone enrolled in it, so you pay the same whether or not an agent helped you.
Can an agent charge me to enroll in a Medicare Advantage plan?
No. Agents can't charge you an enrollment fee, and plans must make sure you aren't charged consulting fees when you're considering enrolling.
Does an agent earn more from some plans than others?
Pay can differ between kinds of plans and companies, which is why it's worth asking any agent how many companies they represent and why they're recommending a plan. CMS sets yearly limits on what independent agents can be paid for Medicare Advantage and Part D enrollments.
Is SHIP counseling free too?
Yes. Your State Health Insurance Assistance Program offers free, unbiased counseling and isn't paid by any insurance company.
Keep reading
- What Medicare agents can and can't do: the rules for 2026–2027Can an agent call you? Is there still a 48-hour wait? What must they tell you? The federal marketing rules for Medicare Advantage and drug plans, in plain English, as of October 2026.
- Medicare agent vs. broker: what's the difference?Agent, broker, producer: what the words mean, the one difference that really matters (how many companies they work with), and how to tell before you meet.
- SHIP counselor or Medicare agent: who should you call?Both help with Medicare for free, but they do different jobs. What a SHIP counselor does, what an agent does, and when to use each (or both).
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