Free Tool · Commission Infrastructure

how much commission
are you leaking?

Every Medicare agency and FMO loses commission it is owed — to chargebacks, to payments that never match an enrollment, and to hours spent reconciling carrier statements by hand. Enter your numbers. See an estimated annual range. No login to start.

2,500
Members under management (100–100,000).
$23
Blended MA / PDP commission per member, per month.
6%
Share of commission clawed back — rapid disenrollment + retroactive terms.
8
Number of carriers paying you commissions — each is a distinct format.
20
Staff hours per month spent matching statements to enrollments.
Estimated annual commission leakage
$31,101$59,589
on ~$690,000 of gross annual commission
Estimate — not a guarantee
Where it leaks — annual, at midpoint
Chargebacks$20,700
Unmatched / missed payments$15,525
Manual reconciliation labor$9,120
Benchmark exposure~41st percentile
Lower leakageHigher leakage
See the full breakdown

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What is commission leakage?

Commission leakage is the gap between the commission a Medicare agency or FMO is contractually owed and what it actually keeps. It is rarely one large miss. It is the slow accumulation of small ones: a chargeback on a member who disenrolled inside the clawback window, a payment that arrives but never matches an enrollment in your system, and the staff hours spent reconciling carrier statements that could have gone to production. Individually each is minor. Across a full book and a full year, they compound into a number worth measuring.

Why chargebacks happen

A chargeback occurs when a carrier reclaims commission it already paid — typically because a member disenrolled or was retroactively termed inside the period the carrier is allowed to recover. Rapid disenrollments, retroactive effective-date changes, and eligibility corrections are the most common triggers in Medicare Advantage and Part D. Because the reversal often lands months after the original payment, it is easy to miss without a system that ties each payment back to a specific enrollment and its status.

Why statement complexity drives missed payments

Every carrier reports commission on its own schedule, in its own format, using its own identifiers. The more carriers pay you, the more distinct formats your team has to normalize — and the more payments slip through unmatched. A payment that cannot be tied to an enrollment is a payment nobody notices is missing. This is why the number of carrier statements you reconcile is a direct input into leakage: statement complexity, not book size alone, is what turns owed commission into uncollected commission.

Manual reconciliation vs. automated matching

DimensionManual reconciliationAutomated matching
Statement intakeRe-keyed or copy-pasted from each carrier's formatEvery carrier format normalized into one schema on ingest
Payment matchingEyeballed against enrollments; unmatched rows quietly droppedEach payment tied to an enrollment with source lineage
Chargeback detectionFound late, if at all, when totals look offFlagged as reversals post against the original enrollment
Cost to scale a bigger bookMore statements means more staff hours, linearlyMarginal — the same pipeline handles more volume

This is a factual process comparison, not a claim about any specific vendor or carrier. Your actual results depend on your book, your carrier mix, and your current process.

How this calculator estimates leakage

The calculator applies documented, versioned model coefficients (leakage-model-v1) to the business aggregates you enter — book size, blended commission, chargeback rate, carrier count, and reconciliation hours. It returns a range rather than a single figure because the underlying rates vary by operation. The coefficients are honest priors that will be recalibrated as more agencies and FMOs run the tool. Treat the output as a directional estimate to size the opportunity, not an audited number.

Questions

What is commission leakage?
The difference between commission an agency or FMO is owed and what it keeps — lost through chargebacks, unmatched carrier payments, and the labor of manual reconciliation.
What causes insurance commission chargebacks?
A member disenrolling or being retroactively termed inside the window a carrier can reclaim commission. Rapid disenrollments and retroactive date changes are the most common triggers.
How do FMOs track commissions across multiple carriers?
Either by normalizing every carrier statement into one schema automatically, or by reconciling formats by hand. The number of distinct carrier formats is a primary driver of unmatched, uncollected payments.
Is the estimate exact?
No. It is a labeled estimate range from versioned model coefficients applied to the aggregates you enter — directional, not audited.
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