Insurance Agent Forum

[Insuranceman]

My FMO just attended BCBS meeting in Ohio today. He was told that they were looking at MA plans first year commisions at $400 and $ 300 yrs. 2-6.

[theinuranceguy]

Originally Posted by Insuranceman

My FMO just attended BCBS meeting in Ohio today. He was told that they were looking at MA plans first year commisions at $400 and $ 300 yrs. 2-6.

You cannot be serious.

[Frank Stastny]

Originally Posted by Insuranceman

My FMO just attended BCBS meeting in Ohio today. He was told that they were looking at MA plans first year commisions at $400 and $ 300 yrs. 2-6.

That ain't right! Is it?

Someone is blowing smoke to get agents fired up. I'll bet there are at least 100 agents on this board that wouldn't be able to stand up in public after reading that.

The "bottom feeders" will be swimming out from under their rocks by the thousands if there is any truth to that.

[scottfree]

Originally Posted by theinuranceguy

You cannot be serious.

Originally Posted by Insuranceman

My FMO just attended BCBS meeting in Ohio today. He was told that they were looking at MA plans first year commisions at $400 and $ 300 yrs. 2-6.

BCBS is always the lowest commission is AR. We were told $250(MA) $300(MAPD) and something like $87 and $100 until this commission rule came out. They will probably keep firdt year the same and make 2 - 6 $125 and $150. They actually have a decent plan but not many will get sold because of these commissions.

They should be able to pay more since there is no FMO or levels since everyone has to go direct. To cheap I guess. Its just to bad. I will be selling a few because they are the best in a few counties I work.

[Insuranceman]

I don't think my FMO was blowing smoke I've dealt with him for years he's a stand up guy. But I'm not taking this one to the bank either. I still haven't seen anything in stone yet and I waiting ro see if the MA plans are even worth messing with.

[GreenSky]

The information I have is that 1st year commissions will not be that much lower (if at all) than 2008 levels.

Rick

[mking]

As you may have heard..........CMS gave carriers one addtional week for the new commisions for 2009......Oct. 8-9??..............This will be a big factOR if I deside to continue to sell INDIVIDUAL MA and PDP plans next year...........Group mEDICARE PLANS is the way to go in the future ...........NO RULES!
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Originally Posted by patch36

I was with UHC last year. In my market their products sucked and their network was virtually non-existent. The ONLY thing they had going for them was the AARP endorsement. The few plans they did sign up will move to another carrier this year, if the salesmen figure out a way to contact them without breaking the rules.

The compensation this year for all new MA plans will set a benchmark for that client. The salesman that moves them to a new company during the next 5 years will only get the renewal commission, not a full commission. How CMS and the companies track that will be interesting...

All I have been told, yesterday, was that I would like the commission schedule, but it was not ready for release. As if I have a choice?

One thing CMS if forgeting is that the reason we changes plans for participants sometimes is that the MA PLAN has changed ( higher cost, lower benefits) from last year to the new year........THats our job to be aware of plan benefits and cost that change....Not just to get new commission..Nobody has addressed this yet....CMS is out of touch with the Public and the real world.....

[Mac1958]

A view from the "inside", for what it's worth:

1. Yes, the carriers had to scramble a bit to put together the new compensation packages, and yes, the October 1 deadline didn't hold. The carriers aren't stalling. Remember that there are many W2 reps out there who haven't gotten the numbers either. You should be hearing this week.

2. Between legislation and the election, my guess is that the Medicare landscape will look like this within a year or two: A nice choice for seniors between HMO, PPO and Medicare Supplements, with roughly 95% of the populace having access to the MA plans. Several companies are looking at the more rural areas, so I don't think the outlying cities will be shut out that badly. That's my prediction. However, I also thought the Broncos were going to the Super Bowl last year...

3. PFFS will be gone after 2010. In addition to the recent legislation, these plans are simply too expensive to operate. Managed care contains costs far better. So, in a typical city, you may see choices like $40 HMO, $75 PPO, $150 and above Medigap/PDP. That's a decent menu to choose from.

4. Remember that neither candidate cares much for Medicare Advantage. Ironically, Obama appears to be willing to work with it, at least. The carriers will be able to offer MA plans without the "additional subsidies", but those $0 premiums won't be around long. I frankly can't figure out what McCain would do.

5. I preach this all the time, but I can't blame Medicare for putting the hammer down. I've heard some pretty nasty horror stories about the behavior of a few agents (I've also seen video), and Medicare is acting to protect the seniors. The rules are tough, but they were earned. A few bad apples, etc. etc...

Not much new here, you guys have a good handle on the situation.

...

[jdeasy]

Originally Posted by Mac1958

A view from the "inside", for what it's worth:

1. Yes, the carriers had to scramble a bit to put together the new compensation packages, and yes, the October 1 deadline didn't hold. The carriers aren't stalling. Remember that there are many W2 reps out there who haven't gotten the numbers either. You should be hearing this week.

2. Between legislation and the election, my guess is that the Medicare landscape will look like this within a year or two: A nice choice for seniors between HMO, PPO and Medicare Supplements, with roughly 95% of the populace having access to the MA plans. Several companies are looking at the more rural areas, so I don't think the outlying cities will be shut out that badly. That's my prediction. However, I also thought the Broncos were going to the Super Bowl last year...

3. PFFS will be gone after 2010. In addition to the recent legislation, these plans are simply too expensive to operate. Managed care contains costs far better. So, in a typical city, you may see choices like $40 HMO, $75 PPO, $150 and above Medigap/PDP. That's a decent menu to choose from.

4. Remember that neither candidate cares much for Medicare Advantage. Ironically, Obama appears to be willing to work with it, at least. The carriers will be able to offer MA plans without the "additional subsidies", but those $0 premiums won't be around long. I frankly can't figure out what McCain would do.

5. I preach this all the time, but I can't blame Medicare for putting the hammer down. I've heard some pretty nasty horror stories about the behavior of a few agents (I've also seen video), and Medicare is acting to protect the seniors. The rules are tough, but they were earned. A few bad apples, etc. etc...

Not much new here, you guys have a good handle on the situation.

...

There might be a few bad apple agents, but, the real abuse came from the marketing organizations. CMS is in no way protecting seniors with this new mess of rules.

I have many clients on MA plans that were great for them. Now that they are changing those plans, there are many better options for them. CMS is saying I can't call them and tell them about other options. How could anyone not blame Medicare for that ignorant rule?

As far the commissions, the companies are definately stalling. I talked to a Pyramid regional manager on Sept 30 and he said he had the commission grid laying on his desk, but, couldn't share it with me yet. They are all stalling because they don't want to be the first to lay their's out there.

[patch36]

It all starts with the FMO's. Most of the abuse in my area came out of one or two FMO's.

[insurance0707]

Jeez, how bad can the commissions be!!!

[yeager]

All this delay is not the companies, it is CMS. CMS wanted another week to see if what they are doing is what they want to do. They could come back and say we are not going level this year. They could pretty much do anything. I think they are still going to be level though.

[jdeasy]

Originally Posted by yeager

All this delay is not the companies, it is CMS. CMS wanted another week to see if what they are doing is what they want to do. They could come back and say we are not going level this year. They could pretty much do anything. I think they are still going to be level though.

A person can believe anything they want. If you believe that CMS is the hold up, go right ahead. I believe it's the companies. If the companies had all the stuff together when they were supposed to have it, then CMS would have already taken action.

They are arguing over the definition of "level". Does it mean exactly the same commisiion or is there a window it has to fall into?

Captive companies are loving the new rules since they will have the leads to draw agent to them. What they don't want to do is put out a "level" commission of say $300 1st year and then find that CMS allows another company that primarily indy to pay $375 or $400 1 year. Renewal commission is not an issue with these companies as they know they will out of these plans by 2011.

The companies are playing games and CMS just sits on their hands and go along for the ride.

[yeager]

I know Pyramid was ready to roll out their commissions till they got notice from CMS. Pyramid is still ready depending on which way CMS goes. Level or not level.

Med supps and LTC are level but pay two different ways. I don't know of any Med Supp companies that pay the way LTC pays although I believe they could if they wanted but they do not.

Why would companies want to be holding this process up. This is pre selling and they are losing sales everyday. With a limited timeframe to sell they want all the days they can get. And this is doing nothing but holding them up.

[jdeasy]

Originally Posted by yeager

I know Pyramid was ready to roll out their commissions till they got notice from CMS. Pyramid is still ready depending on which way CMS goes. Level or not level.

Med supps and LTC are level but pay two different ways. I don't know of any Med Supp companies that pay the way LTC pays although I believe they could if they wanted but they do not.

Why would companies want to be holding this process up. This is pre selling and they are losing sales everyday. With a limited timeframe to sell they want all the days they can get. And this is doing nothing but holding them up.

Because the captive companies will have to put those corks back in the bubbly if the indy companies are allowed to pay more than they are.

Just in my area now, Pyramid pays $225 for an MA. Wellcare pays $420, Coventry pays $450. Which of those companies are agents wanting to sell and which of companies is unhappy about that? They were successful in getting the leads tucked back under the captive umbrella. They in no way want to lose that by another company paying enough extra ccommission so that an agent can buy his own leads.