Medicare Agency

[insurancequestion]

Can a person or agency THAT IS NOT appointed to sell Medicare Supplement Plans or certified to sell Medicare Advantage Plans own an part or a entire Medicare Agency in which producers who are appointed and certified to sell Medicare supplement plans and Medicare Advantage plans and Part D plans?

For example, can Bob and Jake who own P&C / Life insurance agency that is not appointed with any Medicare supplement carrier or certified with any carrier for Medicare Advantage or Part D plan have ownership in another independent agents Medicare business?

 

[Todd King]

Can a person or agency THAT IS NOT appointed to sell Medicare Supplement Plans or certified to sell Medicare Advantage Plans own an part or a entire Medicare Agency in which producers who are appointed and certified to sell Medicare supplement plans and Medicare Advantage plans and Part D plans?

For example, can Bob and Jake who own P&C / Life insurance agency that is not appointed with any Medicare supplement carrier or certified with any carrier for Medicare Advantage or Part D plan have ownership in another independent agents Medicare business?

The majority owner of the agency would have to have contracts in place, be certified, and licensed in the state where the business is written in order to receive overrides on the Medicare business.

 

[vic120]

The majority owner of the agency would have to have contracts in place, be certified, and licensed in the state where the business is written in order to receive overrides on the Medicare business.

But can they receive distributions from a buis if it's not labeled overrides?

I mean you can pay someone with the profits you made from medicare plans you can pay them for all types of services like secretary and such


I would assume you can have an owner get paid if not lic if there is a lic owner and its not direct as overrides but in some other form maybe salary maybe distribution or bonus

IDK anything for sure I am not saying this from experience nor legal knowledge just seems to make sense that there would be a way around it

Also, I knew of an agency that sold Maj med But the owners had their father listed as owner and they were paid through buis

Again I am no accountant nor really know about the ins and outs of it

 

[insurancequestion]

That is kind of what I was thinking as well. I thought that the primary owner/principal would also have to get contracted in order to have any affiliation with the Medicare business in regards to ownership. Even if he/she doesn't want to produce...he/she would have to still get contracted, certified..etc in order to be a owner of a medicare insurance agency..if I am understanding correctly. Thanks

 

[vic120]

That is kind of what I was thinking as well. I thought that the primary owner/principal would also have to get contracted in order to have any affiliation with the Medicare business in regards to ownership. Even if he/she doesn't want to produce...he/she would have to still get contracted, certified..etc in order to be a owner of a medicare insurance agency..if I am understanding correctly. Thanks

DO understand I am not coming from a place of knowledge here I am far from an accountant just seems like it makes sense to me but I could be wrong

MA can be funny but still feel like there is probably a loophole somewhere