If a new beneficiary enrolls in FeelBetter Medicare Advantage with an effective date of July 1, and the agent is compensated under CMS rules, how is the initial year compensation paid and when do renewals begin?

• A. Initial year compensation is paid July through December; renewals begin in January if the enrollee remains enrolled the following year.
• B. Initial year compensation is paid January through June; renewals begin in July.
• C. FeelBetter will pay initial year compensation for July through December. The renewal amounts will be paid starting in January if Ms. Park remains enrolled the following year.
• D. Compensation is not paid in the first year.

Answer: (A)

For CMS-compensated Medicare Advantage sales, the payment schedule follows the calendar year and the enrollment date. With an effective date of July 1, the agent’s initial year CMS compensation is paid for the remainder of that year: July through December. If the enrollee stays enrolled, renewal compensation starts in January of the next calendar year and continues thereafter. So, July through December covers the first year, and January marks the beginning of renewals. This aligns with how CMS structures payouts for mid-year enrollments and switches to renewal payments at the start of the following year.