- 15,319
It's obvious that Health Net will be out of business in 3 years. Why else would they offer lifetime renewals?
Rick
Rick
HealthNet Will Pay MA Renewals FOR LIFE
- Thread starter wehotex
- Start date
- Thread starter
- #12
- 2,401
Which Calif cty is that?
- - - - - - - - - - - - - - - - - -
Because they don't want the agents "flipping" the business to another plan to earn more commission when the 6 years is up. As you know, So Cal has MANY "me too" plans that share the same identical IPAs. It's one less important objection to handle when you don't have to change their doctors, specialists, hospitals, etc vs other markets where the prospect is asked to change so much more. If an agent has been servicing some clients for many years, they would more likely switch if the agent recommended it. Maybe HealthNet wants to prevent that? Then again, maybe I'm being naive about it.
Last edited:
- 15,319
As I understand it, the client-agent relationship is 6 year. If after 5 years I move the client to a new carrier, I still have only 1 year left on my commission cycle.
Rick
[FONT=Verdana","sans-serif]. It is for that reason you are the recipient of this week’s; [FONT=Verdana","sans-serif]Agent of the Week Award!!![/FONT][/FONT]
[FONT=Verdana","sans-serif][/FONT]
I have printed this out and a copy is now hanging [proudly] on the refrigerator.
- Thread starter
- #15
- 2,401
Really?!!! I was told the opposite by my upline when all of this started. I'll need to research this.
- - - - - - - - - - - - - - - - - -
Direct from CMS' evil writing hand:
120.5.3 - Compensation Cycle (6-Year Cycle) (Rev. 93, Issued: 06-04-10, Effective/Implementation: 06-04-10)
42 CFR 422.2274(a), 423.2274(a)
After a beneficiary is enrolled in an MA plan or PDP by an agent or broker, a renewal compensation would be paid for five years after the initial compensation year, creating a six (6)- year compensation cycle. However, if an enrollee moves to a plan of a different plan type, the agent or broker may receive an initial compensation and the six (6)-year cycle starts over again. Once the compensation cycle expires, it does not restart until the beneficiary enrolls into another plan. Plan sponsors may continue to pay agents or brokers renewal compensation beyond the six (6)-year cycle at the plan’s discretion, as described in § 120.5.4. The monthly MARx agent/broker compensation report that is generated when an enrollment occurs will provide plan sponsors with the information necessary to determine whether they should make an initial or renewal payment.
I hope that cheapskate Humana will get the hint and pay me for handling all of my member's customer service issues beyond the six year cycle.
Last edited:
- 15,319
I wonder what this really means:
"if an enrollee moves to a plan of a different plan type, the agent or broker may receive an initial compensation and the six (6)-year cycle starts over again. Once the compensation cycle expires, it does not restart until the beneficiary enrolls into another plan"
What is a different plan type. HMO to PPO?
The way this was explained to me is the total number of years an agent could be paid for a client was 6 unless there was a break, ie. another agent took rewrote it and then the original agent got it back.
Now that we all have been told by a number of carrier that they pay 10 and now Health Net says they pay until death do us part, why have this rule at all?
Obviously CMS doesn't really give a rat's ass how long we're paid. So why shouldn't all carriers pay us forever?
Aside from the obvious answer.
Rick
"if an enrollee moves to a plan of a different plan type, the agent or broker may receive an initial compensation and the six (6)-year cycle starts over again. Once the compensation cycle expires, it does not restart until the beneficiary enrolls into another plan"
What is a different plan type. HMO to PPO?
The way this was explained to me is the total number of years an agent could be paid for a client was 6 unless there was a break, ie. another agent took rewrote it and then the original agent got it back.
Now that we all have been told by a number of carrier that they pay 10 and now Health Net says they pay until death do us part, why have this rule at all?
Obviously CMS doesn't really give a rat's ass how long we're paid. So why shouldn't all carriers pay us forever?
Aside from the obvious answer.
Rick
- Thread starter
- #17
- 2,401
HMO, PPO and PFFS are the same plan types (MA). A "different" plan type would be Medicare + PDP, Medicare supp + PDP.
- 15,319
So it is as I believed. It's the agent/client relationship that only goes 6 years regardless of how many companies the same agent/client moves to. Obviously this changes if the carrier pays longer.
Rick
- Thread starter
- #19
- 2,401
One of my uplines told me that a new 6 year cycle starts when you enroll your mb into another MA plan.
- 314
Here is how Health Net pays renewals on their supplements: they pay increased commissions as the supplement rates go up. Show me another plan that does this.
i have sold Health Net for 30 years. While they are not perfect, they have always done right by me and their in-house team is a pleasure to work with.
i have sold Health Net for 30 years. While they are not perfect, they have always done right by me and their in-house team is a pleasure to work with.
