What is the typical health insurance broker commission rate?
Updated includes the first 34,505 filings for plan year 2025, received by the DOL through September 24, 2026
The median health insurance broker commission on a fully insured employer medical plan was 3.8% of premium in plan year 2024, measured on 4,574 Form 5500 filings by employers with 100 or more participants that paid a commission. Half of those plans fell between 2.7% and 5.0%. Rates step down with size: 100-199 participants 4.2%, 200-499 participants 3.6%, 500-999 participants 2.7%, 1,000-4,999 participants 2.0%, 5,000+ participants 4.8%. In the first 34,505 filings for plan year 2025, received by the DOL through September 24, 2026, the median so far is 3.5%.
| Employer size (participants) | Median rate | Middle half | Plans rated |
|---|---|---|---|
| 100-199 | 4.2% | 3.1% – 5.2% | 2,201 |
| 200-499 | 3.6% | 2.6% – 5.0% | 1,711 |
| 500-999 | 2.7% | 1.9% – 4.4% | 399 |
| 1,000-4,999 | 2.0% | 0.8% – 3.5% | 205 |
| 5,000+ | 4.8% | 1.0% – 5.0% | 58 |
Source: DOL Form 5500 and Schedule A, plan year 2024 (the first 34,505 filings for plan year 2025, received by the DOL through September 24, 2026); data built October 24, 2026. Employer health plans with 100 or more participants. Full methodology.
Is 5% a normal health insurance broker commission?
It is above the median. On fully insured employer medical plans with 100 or more participants, half of commission-paying plans fell between 2.7% and 5.0% of premium in 2024; 5% sits near the top of that range for employers under 200 participants and well above it for larger groups.
Why are small employers' rates higher?
Carrier commission schedules step down as premium volume grows, and large employers more often pay a flat consulting fee instead of a percentage. A 150-person plan and a 5,000-person plan can pay the same broker very different rates for similar work.
Where does the rate come from?
Schedule A of each employer's Form 5500 reports earned premium and broker commissions and fees per insurance contract. The rate is (commissions + fees) ÷ earned premium on contracts coded as medical coverage, for employers with at least $100,000 of such premium; self-funded plans have no medical premium and are excluded.