Question on Med Supp Commission

[justsayinisall]

I'm currently a captive 1099 with a company that writes for multiple Medicare supplement companies. I just looked at my commission statements and I notice that I'm not being paid the expected commission.

The company pays 16% commission. I sold a plan (G) and this company took out the medicare part B deductible. Say's it's built into the premium. The $183 a year deductible is $15.25/month. So it lowered my net commission by $29.28. Doesn't sound like a ton but when you multiply that by many, many, plans sold.

Is this normal for agents that are independent? Or is this something my company implemented all by themselves?

 

[rousemark]

I have seen companies not pay commission on the portion for the premium that covers the part B deductible on plan F since Plan F covers it... But Plan G???? It doesn't cover the part B deductible..

 

[justsayinisall]

OMG I'm sorry I signed them up on an F. It was with Cigna.

 

[sshafran]

I'm currently a captive 1099 with a company that writes for multiple Medicare supplement companies. I just looked at my commission statements and I notice that I'm not being paid the expected commission.

The company pays 16% commission. I sold a plan (G) and this company took out the medicare part B deductible. Say's it's built into the premium. The $183 a year deductible is $15.25/month. So it lowered my net commission by $29.28. Doesn't sound like a ton but when you multiply that by many, many, plans sold.

Is this normal for agents that are independent? Or is this something my company implemented all by themselves?

That does not sound legitimate to me... at all. And 16% is low for most carriers (not all) - I hope they are giving you something in return for the low comp of 16%.

 

[sshafran]

OMG I'm sorry I signed them up on an F. It was with Cigna.

Ah, I see.........

 

[justsayinisall]

Free leads is all I get. I get 16% on first year only. I give up all residual.

I work from home, it's all phones. I was going to go out on my own, after working at a call center for 4 years, but the husband thought this might be a better first step.

Aep was ok. Sold about 85 plans. I had hoped it would be better than that but I was new and still learning the system.

Know anything better?

 

[sshafran]

Free leads is all I get. I get 16% on first year only. I give up all residual.

I work from home, it's all phones. I was going to go out on my own, after working at a call center for 4 years, but the husband thought this might be a better first step.

Aep was ok. Sold about 85 plans. I had hoped it would be better than that but I was new and still learning the system.

Know anything better?

Yes - a credit card and buy your own leads.

Seriously - I'm not trying to be a naysayer - but with Cigna (recruiters can correct me if I'm wrong) you can likely get close to 21-22% with most FMO's for 6 years (some states more).

You sold 85 policies. Great.

Let's say - average premium = 110

Free Leads = 110 * 85 * 12 * 16% = $17,952 1st year, $0 yr 2-6

No free leads = 110 * 85 * 12 * 21% = $23,562 1st year, $23,562 yrs 2-6 (give or take a little... you'll lose some....) = $140,000

So, you spent $116,000 on leads. Free leads are not free.

 

[somarco]

If you don't have the $$$ to float your business, including lead gen, then this may not be a bad deal.

"Free leads" always come with a price tag. In your case it is reduced commission. I can't say how much the reduction is because I do not use Cigna Health & Life.

Writing 85 apps during AEP is good but how many would you have written if you were independent?

Were all apps with Cigna H&L? All in FL?

When you worked in a phone room, how were you compensated?

 

[sshafran]

If you don't have the $$$ to float your business, including lead gen, then this may not be a bad deal.

"Free leads" always come with a price tag. In your case it is reduced commission. I can't say how much the reduction is because I do not use Cigna Health & Life.

Writing 85 apps during AEP is good but how many would you have written if you were independent?

Were all apps with Cigna H&L? All in FL?

When you worked in a phone room, how were you compensated?

^ Sage advice - not a bad deal if it's your last resort and you absolutely need the work...... but I'd almost rather go work at Starbucks as the opening barista and get on 21% independent with a 6-yr commission trail and hit the phones in the afternoon/evening after making Americanos.

In other words - I'd be doing everything I could to figure out a way to finance your own business. You can obviously sell - 85 is no joke.

 

[justsayinisall]

85 apps were a combination of supplement, advantage, dental/vision, and HIP plans. Multiple companies; cigna, humana, aetna, mutual etc.

when I worked in a call center it was hourly with crap bonus. I never broke $42,000/year. I sold 60-120 plans per month on an incoming line.

this is getting me used to the outbound calling, which is completely different than inbound. I'm also getting advantage plan experience. the call center was just supps and dental.

now you guys have me thinking. I know I'm leaving so much more money on the table. gahhh

ok so approximately how much do leads cost? I know it depends on the quality but what would be a good estimate to have? I DO have a few brand new credit cards just sitting there lol. I do need to bring in income but my husband and I are ok. I can afford some months without pay.