Agility continues to bring you the latest information we’re hearing about the 2027 healthcare policy planning. Today, we want to share news about healthcare costs for 2027.
A PwC report shows that healthcare costs should increase by 9% in 2027 from 2026 levels. The report details the contributors to the cost increase.
Still, two key components it covers are the rising costs of prescription drugs and the higher-than-expected costs of implementing AI systems across healthcare.
A Possible Insurance Response?
So, how can the insurance markets account for these increasing costs in 2027? A recent Mercer survey of companies with 500 or more employees shows that nearly half expect to increase the cost share for employees using their employer-sponsored health insurance in 2027.
Agility will continue to bring the latest news about what the 2027 health insurance marketplace will look like as soon as we hear it. We continue to encourage all insurance agents across all insurance markets to closely examine their current health insurance product portfolio.
Evaluate your current products on whether they provide the best financial protection your clients may need in 2027 to address the increasing cost burdens the healthcare system may impose on them. Pay close attention to your ancillary or supplemental policy options and what they deliver in financial protection for increasing cost shares, health premiums, and deductibles.
The Agility Difference
As the insurance market changes, Agility draws on years of experience to help you deliver great service and grow your business. For all insurance questions or to connect with our Medicare, ACA, Group, ICHRA, and ancillary experts, contact our Dedicated Producer Support at (866) 590-9771 or support@enrollinsurance.com.
Sign up for our weekly emails to get tips and updates. Let Agility help you build your skills and make the most of client opportunities in 2026 and beyond.
The Agility Difference
If you’ve worked with Medicare clients, you know there’s no one-size-fits-all plan. What many agents don’t realize is how effective and profitable it can be to combine Medicare with the right supplemental coverage. Let’s explain this simply and practically.
Medicare Alone Leaves Gaps, and Clients Know It
Original Medicare (Parts A and B) offers solid coverage, but it doesn’t cover everything. There’s no limit on out-of-pocket costs, and it doesn’t cover important services like dental, vision, and hearing care.
That’s why supplemental options like Medicare Advantage or Medigap exist. Almost all Medicare Advantage plans now offer additional benefits, such as dental, vision, hearing, and wellness programs.
This demand is real and influences how plans are marketed and picked. Clients want more coverage, so you’re not just selling extras, you’re meeting a real need.
More Coverage Provides More Value and Higher Retention
The more complete your solution, the longer clients stick with you. Medicare’s pay structure supports this by offering higher first-year commissions and ongoing renewal payments.
When you combine Medicare with supplemental products, you can:
- Reduce client confusion
- Increase satisfaction
- Lessen the possibility that they get help from someone else
The result is that every client you keep becomes a long-term source of income, not just a one-time sale. The better coverage you deliver to them, the more loyal they become and the more value they bring over time.
Supplemental Plans Create Layered Revenue Streams
Let’s look at the numbers, because this is where it gets interesting. In 2026, Medicare Advantage commissions are around $694 for the first year and $347 for renewals. Medigap commissions are about 20% of the first-year premium and 10% of the renewal.
On average, that means about a $322 first-year Medigap commission and $166 for renewals, or roughly $180 to $300 per client each year, depending on the premium.
Now visualize this across your entire book of business. Instead of earning from just one policy, you have a core Medicare plan—either Advantage or Supplement—plus add-ons like dental, hospital indemnity, or vision to meet client needs. This is how agents move from one-time sales to steady, recurring income.
Clients Actually Rely on Agents to Manage This
Agents and brokers are some of the most trusted sources for Medicare decisions. That’s important because it means:
- Clients expect guidance
- They trust expertise
- And they need help comparing complex options
When you focus on building a full coverage strategy instead of just selling a plan, you become more than a salesperson — you become a trusted advisor. And trusted advisors are hard to replace.
Why Both Medicare Advantage and Medigap Matter Strategically
From a business perspective, you don’t have to pick one side. You just need to understand how each fits into your growth plan.
Medicare Advantage (MA)
- Lower or $0 premiums
- Includes built-in supplemental benefits
- Strong upfront commissions
- Highly competitive and marketing-driven
Medigap (Medicare Supplement)
- Higher premiums, but predictable coverage
- No network restrictions
- Commissions tied to premium (scales with plan value)
Smart agents don’t just sell one plan. They find the best fit for each client. When you do this well, you:
- Increase close rates
- Build trust
- Expand your book more efficiently
The Real Profit Strategy is Forming Strong Relationships
When you combine Medicare with supplemental coverage, you create:
- Multiple touchpoints with the client
- More reasons for annual reviews
- More opportunities to cross-sell
Most agents miss the big picture: profitability comes from relationships. Because commissions include renewals, every happy client is a long-term asset, not simply a one-time sale.
This isn’t Upselling, it’s Smart Positioning.
Top agents don’t ask, “What can I sell this client?” Instead, they ask, “How can I build the most complete, reliable coverage for this person?”
When you do that,
- Clients stay longer
- Referrals increase
- Revenue compounds
Data supports this. Medicare has coverage gaps that supplemental policies can fill, and agents are rewarded for their work. Combining Medicare with supplemental coverage isn’t just good service; it’s a scalable, repeatable, and profitable business model.
It fits:
- Client needs
- Carrier incentives
- And your long-term income
In today’s competitive Medicare market, this organization is what separates average agents from high-growth producers.
The Agility Difference
With the ongoing evolution of the insurance market, Agility empowers you to identify your defining characteristic through our team’s expertise, positioning you for growth. With Agility, you also get Dedicated Producer Support at (866) 590-9771 or support@enrollinsurance.com to answer any insurance questions and direct you to our Medicare, ACA, and ancillary experts.
They can also add you to our weekly email list for tips and updates. Let Agility empower you to evolve your capabilities and capture the opportunities in 2026.
