🚨Updated 2025 Broker Compensation Rates 🚨

Reset to Fair Market Value (FMV).

⛔️ Removed the additional $100 for initial and $50 for renewals.

📈 2.4% increase for broker compensation from 2024

The language was altered from “must pay” to “may pay”. Carriers will now need to submit their broker compensation rates to CMS and could chose to pay alternate amounts, up to the FMV.

Due to lawsuits, filed by two groups representing FMOs, Texas courts recently placed an injunction (stay) on implementation of the 2025 CMS Final Rule, where Broker and TPMO Compensation was impacted. All other components of the 2025 CMS Final Rule remain intact and will be implemented.

Courts issued the stay on the opinion that:

📉 CMS did not demonstrate the efficacy of alteration of Broker / TPMO Compensation

⏱️ CMS did not provide adequate time to implement the contract change requirements

🔮 CMS did not provide clarity around the compensation changes.

This doesn’t mean the court case is over or that this is the ruling from the judge. The case is still ongoing and they are hearing arguments from both sides.

Change, in Broker/TPMO compensation structure, is likely still to come, but not until 2026 at the earliest.

Most carriers are conveying that it is “business as usual” for 2025.

Carriers will be able to continue paying “Administrative Fees”, which means carriers may choose to continue expense reimbursement programs and compensation for HRAs.

This part is wonderful for agents and beneficiaries. There are enough overwhelming changes coming with the Inflation Reduction Act (IRA) Part D Changes and Elections.

Now let’s get back to what we do best, providing education and guidance to those who need it most! ❤️

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