How to Become a Medicare Agent
By Forrest Klein
Medicare is a heavily regulated industry. To become a Medicare agent, you need certain licenses, certifications and contracts. These will allow you to sell, but getting started is even more difficult for agents who don't know what to expect. Many agents don't last two years in the industry, but those who do build very profitable careers.
Let's get into what you need before you can sell, and how to be a successful agent.
What You Need to Sell Medicare
Three things qualify you to sell Medicare plans:
- Your state health insurance license. Every state has different requirements. Once you have your state, you can buy licenses to sell to people in other states as well.
- An active AHIP certification. This is required for Medicare.
- Carrier contracts. This gives you access to the products you'd sell. If you want to sell UHC plans, you need a UHC contract, same with all carriers.
The state health exam and AHIP exam both cost money. Getting carrier contacts is also very difficult by yourself, or even impossible for some carriers. That's where we come in! We have a discount on the AHIP certification, and we take care of your carrier contracts. If you're serious about this industry, let us help you with these steps.
Step 1: Get Your State Health Insurance License
Start by getting a health insurance license in your state. Requirements vary by state, so you will need to look into what your state exam and requirements are.
The process looks similar across states:
- Complete pre-licensing education (hours vary by state, typically 20 to 40)
- Pass your state's health insurance exam
- Submit your license application through your state's Department of Insurance
Pre-licensing courses run $50 to $200 depending on the provider. Exam fees typically land between $40 and $100. Most people can complete this in less than $400 and within a couple weeks.
Check your state's Department of Insurance for exact hour requirements and approved course providers.
Step 2: Complete AHIP Certification
AHIP (America's Health Insurance Plans) certification is required before you can sell Medicare Advantage or Part D plans. It covers Medicare program rules and the fraud, waste, and abuse (FWA) training that CMS mandates for all agents.
Key facts about AHIP:
- Costs around $175 per year (But our partnership gets you $50 off!)
- Opens each year in late June for the upcoming plan year
- Must be renewed every year before selling begins
- Most carriers can't offer or maintain active contracts until your AHIP is active
Complete AHIP first. It is the prerequisite that unlocks everything else.
Step 3: Get Contracted with Medicare Carriers
After AHIP, you contract and get appointed with the carriers whose plans you want to sell. Your appointment is what gives you legal authority to represent a carrier and enroll clients.
The fastest path is through an FMO like Agent Boost. An FMO holds existing contracts with dozens of Medicare Advantage, Medicare Supplement, and Part D carriers. You submit your contracting paperwork once, and the FMO handles appointments across multiple carriers simultaneously. This costs you nothing.
Contracting directly with some carriers yourself is possible but requires you to handle each contract for every carrier. You lose the consolidated support, and most carriers expect you to have a volume commitment before they prioritize your onboarding.
Step 4: Complete Carrier Product Certifications
Each Medicare carrier requires its own annual product certification in addition to AHIP. These cover the carrier's specific plans, benefits, service areas, and compliance rules for the upcoming plan year.
Carrier certifications typically open after AHIP in summer. Each one takes one to two hours to complete. Plan to finish all of them before the Annual Enrollment Period begins in October.
You cannot legally market or enroll clients in a carrier's plans until that carrier's certification is complete for the current plan year.
Why AEP Timing Matters
The Medicare Annual Enrollment Period (AEP) runs October 15 through December 7. This is when the majority of Medicare Advantage and Part D plan changes happen. Most agents write a significant portion of their annual business during this window.
To sell during AEP, you need your license, AHIP, carrier contracts, and all carrier certifications finished before October 15. Agents who start the process in September often miss the window entirely.
AHIP opens in late June. Starting in summer gives you enough margin to finish contracting, complete certifications, and enter AEP ready to write business.
How Much Do Medicare Agents Make?
As a Medicare agent, you can sign contracts with agencies and FMOs that have varying compensation structures. We won't cover those, we'll stick to how an independent agent earns money. It's more complicated, but it's also where the biggest earning potential is.
There are 4 things to know about your commission: Fair Market Value (FMV), your first-year commission, renewals, and new-to-Medicare (initial year) commissions. Don't skip learning about any of these. Here's how it works:
Fair Market Value (FMV)
Medicare Advantage and Part D commissions are regulated by CMS and set annually. This rate is called Fair Market Value (FMV). FMV for Medicare Advantage in 2026 is $347, and will be increased to $363 in 2027. Part D commission is $57 in 2026, going up to $65 in 2027.
Part D commissions for 2026 are $114 per new enrollment and $57 per renewal annually.
These are FMV rates. Carriers can set lower rates per plan, or even make a plan non-commissionable, if they don't want you to sell that plan. Most plans will offer FMV, though.
First-Year Commission
When you sell a policy, for the first calendar year, you get paid a one-time commission. The amount you get paid is FMV (or what the plan offers), prorated for how much of the year this plan will be active.
For example, let's say you sell a policy that goes effective in July 2026. 2026 FMV is $347, and the policy would be active for 6 months. Your commission for that policy would be $173.5. As another example, let's say you sell a 2027 policy during AEP in 2026. That policy would take effect January 1, 2027, and you'd get the full commission with no proration, meaning come January 1, you get paid $363.
Renewals
This is the part where careers are built. When you sell a policy, that policy goes on what is called your book of business. The first year, you get the first-year commission. However, in following years, if that client remains on your book of business, you start earning monthly renewal commissions on that policy. In 2027, the monthly renewal amount is $30.25 (FMV divided by 12 months).
So if you had 100 policies on your books renewing in 2027, you'd be getting paid $3,025 every month on those renewals, before you even sell a policy. Careers in health insurance are built on renewals.
New-to-Medicare Commissions
When you enroll someone in a Medicare Advantage plan for the first time, in their first year in Medicare, you earn double-commission. In 2027, initial-year commission is $725. Finding an audience and helping those new to Medicare is a great way to increase your overall earnings.
Frequently Asked Questions
Is there a separate Medicare license? No. There is no standalone Medicare license. You need a state health or life and health insurance license, then AHIP certification and carrier product certifications. The license itself is the same one used for other health products.
How much does AHIP certification cost? AHIP costs around $175 per year, $125 if you go through Agent Boost. It renews annually before each Medicare plan year.
When should I start the process to sell Medicare? Start in summer to be ready for AEP (October 15 through December 7). AHIP opens in late June, carrier certifications follow, and contracting takes time. Early August is a realistic target for having everything complete.
Do I need an FMO to sell Medicare? Not legally, but most agents use one. An FMO provides carrier contracts, contracting support, AHIP guidance, lead programs, and training, all at no cost to the agent. It is the most efficient way to get contracted with multiple carriers at once.
How long does the entire process take? Most people complete licensing, AHIP, contracting, and carrier certifications within six to eight weeks if they start in early summer. State licensing timelines vary, so factor that in first.
Get Started with Agent Boost
Agent Boost is an FMO built by agents, for agents. We started as individual producers at the kitchen table and grew into one of the biggest FMOs in the nation. We've been where you are, and we can help you succeed. No other agency out there offers the trainings, support, tools and growth that we do.