Insurance Agent Forum

[b-insure]

For 2009, Does anyone know if initial or renewal commissions will be paid on enrollments of those losing coverage from their existing MA plan (plan being eliminated)? Would this business be written using the AEP or would it make a difference on our commissions to use an SEP? Since these clients would be enrolled in Original Medicare if nothing was done, wouldn't it make since for this to be considered an initial commission?

[Tina]

The initial commission only applies to people who have never been on an MA plan before. ie: people aging into the system, or people who have only had original medicare and med supps. If they are on a MA plan that's being eliminated, the commission will be at the renewal rate

[walleyeb1]

You should also note that some companies are eliminating plans and auto enrolling MA clients into a different plan. ie. Coventry is doing away with Freedom 1 in some counties and putting clients into Freedom 1b if they do nothing. 1b costs more and benefits are not as good.