The Great Big Medicare Rip-Off [Medicare Advantage]

[InsuranceGuy29]

My point is the plans will get bought either way. Agent, no agent, $100 commission, $1000 commission... they might not like it, but it will happen.

And the post was referencing the comparison of life comp vs. mapd comp. One is a necessity, other is not... thats why it pays more up front.

I just replied this to a statement similar as yours......


The reality is, insurance is a very confusing field with a million laws and rules that are constantly changing. Before I was in this industry, I didn't even know what coinsurance or a deductible was. That's 95% of people in society.

Whether they want or like agents/brokers or not, people know absolutely nothing about how insurance functions, how to obtain it, where to obtain it, or what's what, and they need constant ACCURATE and QUICK advice/help with it.

Even in the nightmarish under 65 Marketplace (aka "Obamacare), they slashed many of the commissions and made some go to zero. They thought government navigators could handle it. A bazillion complaints later, agent commissions are reactivated in recent years and creeping right back up to where they used to be, as they saw most agents exit that market, as the juice wasn't worth the squeeze. Creates too much chaos.

Even when some of my clients call Healthcare.gov for even SIMPLE information, the idiots usually ALWAYS tell them the wrong information. Once these companies also saw how much money and business they lost, they panicked.

Never underestimate the power we have to ethically sway people into one company or the other. If company A treats me and my clients great and company B has similar or a few slightly less copays and treats my clients and myself like garbage....guess who I'm gonna recommend?

Whether they want to pay us or not, they know they have to. They'll just keep playing "the numbers game".....slightly raising some copays and premiums here and there as they go. In my area, in the under-65 market in 2017, only one company was paying agents, now they all are.

The main power brokers wield is CONNECTIONS and huge books of business that can be swayed either to or away from companies. That's invaluable to companies. They also help these companies actively obtain business all year long.

So, sure....anyone can sign up for a Medicare Advantage plan, but most people don't even know the first thing about where to start, they don't want to be bothered with it, they don't understand it......and for the companies, we agents come cheap and help them obtain business and keep business by answering all their questions. That's a very cheap benefit, in the overall scheme of things.

With your frame of mind, you're giving the general population WAY too much credit. lol. And I don't say that in a demeaning way, but it just is reality.

 

[scagnt83]

With your frame of mind, you're giving the general population WAY too much credit. lol. And I don't say that in a demeaning way, but it just is reality.

And I never said it was a good idea did I? I specifically said consumers might not like it.

My point, is the same amount will be bought. ACA might have been a clusterf*ck, but they still bought them didnt they?

My original post on the subject was in response to life comp vs. mapd.

Nothing about it had anything to do with the "best way to handle the issue".

Simply that one is a necessity and the other is not.

 

[selfgen]

Your mother has had an MA plan since 2001?

Yes, she has. I started selling Advantage plans in 1996. Back then they were called Medicare HMOs. These plans have been around longer than people think. That’s how I got started in the insurance sales business. I was working as a night time computer operator for a health plan and in 1996 they told me they were going to start selling these Medicare plans and so I got licensed and became a captive agent with them.

 

[selfgen]

I know the timelines. That's why I asked. The MMA of 2003 turned it into what we know today. But I would interested in what kind of MA plan there was in 2001. Certainly wasn't an MAPD.

the plans back then were not much different in their design. They worked the same way: PCPs, a network, co-pays,etc. And since Part D didn’t start till 2006, some of these plans would offer an allowance for prescription drugs of some sort.

 

[wehotex]

the plans back then were not much different in their design. They worked the same way: PCPs, a network, co-pays,etc. And since Part D didn’t start till 2006, some of these plans would offer an allowance for prescription drugs of some sort.

You're not kidding. There were not nearly as many blockbuster drugs at the time. A southern Calif Medicare HMO would offer either only $500/year or $700/year (tighter formulary with frequent pre-auth denials). Some smart members would flip every few months to get more benefit on their drugs.

 

[PCBI]

What certainly can happen is cms cuts commissions in 1/2 and most agents flee . The above poster made a good pt . Why pay these type commissions for government subsidized mapd and aca products people must have ? Sure they must have car and auto ins but those aren’t subsidized.

DP you are not drinking the koolaid either. Im not against MA Plans they have been a good icing on the cake to the core life business.

But I dont trust the comp on these policies. When the powers to be realize they are over paying agents it will squeal the wheels to a halt. Guaranteed commissions will be 1 year and 1%-2% renewals just like group health

 

[PCBI]

And I never said it was a good idea did I? I specifically said consumers might not like it.

My point, is the same amount will be bought. ACA might have been a clusterf*ck, but they still bought them didnt they?

My original post on the subject was in response to life comp vs. mapd.

Nothing about it had anything to do with the "best way to handle the issue".

Simply that one is a necessity and the other is not.

Me thinks when MAPD subsidies start getting sqeezed companies like AARP Humana Aetna will start hiring “in house” agents on an hourly wage and keep whatever subsidies to run the show. They just cant keep funding these commissions. The money has been flowing but everthing in-our lives are getting squeezed. MAPD is adding more free benefits like dental and money cards, unbelievable

Tick Tock the rocks gonna drop us agents imo

We’ll see

 

[wehotex]

Me thinks when MAPD subsidies start getting sqeezed companies like AARP Humana Aetna will start hiring “in house” agents on an hourly wage and keep whatever subsidies to run the show. They just cant keep funding these commissions. The money has been flowing but everthing in-our lives are getting squeezed. MAPD is adding more free benefits like dental and money cards, unbelievable

Tick Tock the rocks gonna drop us agents imo

We’ll see

Do you realize that an agent’s street level commission is only about conservatively 2-2.5% of gross PMPM comp to the MA carrier?
I’m not even counting the obscene markups for chronic conditions and Medicare-Medicaid contracts. I would also factor in that we are a good part of the companies’ retention operation, especially for companies who drastically cut corners with outsourcing their Mb Services Depts.

If they were serious about cutting deadwood, FMO comp and “marketing” <g> would be a better start.

 

[Midlevel]

Do you realize that an agent’s street level commission is only about conservatively 2-2.5% of gross PMPM comp to the MA carrier?
I’m not even counting the obscene markups for chronic conditions and Medicare-Medicaid contracts. I would also factor in that we are a good part of the companies’ retention operation, especially for companies who drastically cut corners with outsourcing their Mb Services Depts.

If they were serious about cutting deadwood, FMO comp and “marketing” <g> would be a better start.

D-SNP should be paying us $1500/750 comp. They are making bank on those plans.

 

[Yagents]

DP you are not drinking the koolaid either. Im not against MA Plans they have been a good icing on the cake to the core life business.

But I dont trust the comp on these policies. When the powers to be realize they are over paying agents it will squeal the wheels to a halt. Guaranteed commissions will be 1 year and 1%-2% renewals just like group health

Here it comes.........

https://healthpayerintelligence.com...antage-marketing-policies-remains-a-challenge

The Commonwealth Fund researchers called for more investigation of what information is accessible for beneficiaries as well as agent and broker compensation.