How Medigap Insurers Sales Rewards Hurt Seniors on Medicare

[Fisher]

After 3 years she sent out med supp AOR change forms to 500+ clients, they all signed it, he called all of them, and they didnt know who he was. .......and he lost the legal battle and commissions.

It's been my understanding that AORing a Med Supp only gives servicng rights to the agent - the commissions stay with the writing agent. That's how MoO explained it to me back in the day. Has that changed and the commissions do transfer now?

 

[Yagents]

It's been my understanding that AORing a Med Supp only gives serving rights to the agent - the commissions stay with the writing agent. That's how MoO explained it to me back in the day. Has that changed and the commissions do transfer now?

Bcbs AZ had different rules and commish did transfer. Back then it was lifetime 10% renewals. That went to $2 month after obamacare wiped them out. Other carriers have an agent "lock"

 

[DonP]

Just curious. My book is about half yours, and I've assumed books become stagnant around 1-1.5k unless your agency is built to scale. I've hired a CSR, and will look to hire an employee agent in 2025. I think that will allow me to grow to about 3,000 before it stagnates.

I don’t want to burst your bubble but the chances of you growing to 3k clients with only 1 csr and 1 employee agent are very slim . Even a good agent who has a high mix of mapd will lose about 10% due to poaching , deaths , moving out of area etc . That means you to write 300 new min every yr just to stay at 3000 . To get there from 600 now will take 10 plus yrs min. You’ll need 4-5 loa agents and 3 csr’s . If marketing and overrides go away hiring loa’s will be tough to be profitable. After paying them a salary , $100 an app, and lead cost you’ll be in the hole . Ya agents client mix is the only reason he can handle 1500 alone . Aca is very very little service work during the yr . I hardly write any and I got 130 on books . I get maybe 5 calls a month . Outside open enrollment you get few calls . He sells all med supps so few few calls on that . Pdp’s he’ll get some service calls . Now those 3 months of open enrollment are brutal . But the other 9 months I bet he hardly gets 5-8 calls a week . I get 7-12 calls a day .

 

[somarco]

It always amazes me how some agents profess to know EXACTLY how other agents grow and service their business. I presume this is because of their superior intellect and telepathic powers.

 

[somarco]

I pick the carriers that are best for my clients, I don't chase bonus programs or trips, they come naturally if they come at all.

You will never go wrong when you put your clients best interest before yours. Too many have commission goggles on and never bother to ask the prospect what they want.

 

[rmhaire]

It always amazes me how some agents profess to know EXACTLY how other agents grow and service their business. I presume this is because of their superior intellect and telepathic powers.

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I think I'll fire my CPA and attorney this year. Why waste all that money when there's always one or two on here that know more about how to run my agency than they do.

 

[somarco]

I think I'll fire my CPA and attorney this year. Why waste all that money when there's always one or two on here that know more about how to run my agency than they do.

Only one or two?

Amateur!!

 

[somarco]

10% attrition is horrible!

 

[rmhaire]

Sure is a lot of bubbles in here. Reminds me of the Lawrence Welk show.

 

[DonP]

I'm sorry to burst your bubble but you're wrong. You basically provide the math and still get it wrong. I did a little over 200 this year as a solo agent. And that's doing 75% T65, 75% of those MAPD, and all in Alabama. I don't go after transfers. I can easily add another 100-150 with another agent and CSR.

So, thats 300-350 there. Sprinkle in a ACA (which I used to refer out but I started writing in AEP) and that's 400-500. And yeah, I'll lose 10-15% a year but I still get to 3,000 in about 8 -15 years depending on production and retention rate.

And I wont just hire 1 loa agent. I just said I intend to hire my first in 2025. The point is to replace myself in my agency so I can focus on other business interest.

So to generate 75% t-65 most people have to do seminars . Those are $2 k min a pop to get 6-10 new people . What I’m saying is the potential lose of marketing money and overides is big . I know top agencys with 8-10 agents that only have 5 k client books in 10 yrs . If trump gets in aca subsidy’s like now in big jeopardy . But nothing wrong with dreaming and trying to get there .