I have been working as a fee-based health insurance consultant for more than 25 years. The other day I was visiting with a wholesale broker and asked him how much do brokers make these days. He works with all the big houses and a whole lot of mom and pops.
“Brokers earn between $25 to $40 pepm Bill” was his response. “Thats the going rate these days.”
Amazed, I called a friend who owns a TPA . “How much to you pay your brokers?” I asked. “We pay $50 pepm Bill” was his stunning response.
So I asked Dr. Google “How much do health insurance brokers make?”
“According to the Kaiser Family Foundation (KFF), a non-profit organization not affiliated with Kaiser Permanente health plan, the national compensation for Health Insurance brokers in 2020 was $15.58 per member per month (pmpm) for all sales, including IFP, Small Group, and Large Group. For Small Group only brokers, the average comp in 2020 was $22.54 pmpm; for Large Group sales, the national average comp in 2020 was $9.97 pmpm.” SOURCE HERE
Holy Smoke! I had no idea. But what about all the bonus commissions, are they factored in here? Nope.
Maybe I should raise my fees. I could be driving a new Cadillac by Christmas! Beats the one I’m driving now!
