Insurance Agent Forum

[dlvhi]

Hello All

I was wondering what the most recent guidance is on 1st year commissions for MA plans for 2010 when the person has never been on MA but already has a PDP?

If I remember correctly the most recent guidance from CMS for 2009 only modified their position with regard to the retroactive interpretation that a person who already had a PDP couldn't count as an initial MA enrollment. They didn't seem to withdraw that interpretation going forward.

Are we looking ahead to a season of mostly $200 commissions, except for aging-in?

[MrMack]

It will probably be identical to this year. We are evil insurance agents who make too many profits according to our President!!

According to Ritters website, they said companies could raise commissions if they wanted to by $2 a year for renewals and $4 for new to Advantage. I am not even kidding.

[dlvhi]

Thanks for the reply.

If it is the same for 2010 as it was for 2009 ($400 for initial enrollment) that would be ok with me, much better than dropping the first year to to $200.

I went through the archives for September and August on Ritter's site to try to find the $4 and $2 references without any luck. If you could point me in the right direction, I would appreciate it.

Thanks.

[MrMack]

I went through the archives for September and August on Ritter's site to try to find the $4 and $2 references without any luck. If you could point me in the right direction, I would appreciate it.

Thanks.[/quote]


Search Commissions in the blog and look for June 10, 2009. It is in Black and White from CMS.

Makes me sick!

[Gerard/Premier Benefits]

As far as I know, it is the same. We have been using MSS to increase commissions. Its simple and works real well with the seniors.

[hockeyday]

What is MSS

[Gerard/Premier Benefits]

Qualify your client for medical service and suplies and there are many companies who will by that information from you. Obvoisly you know that when enrolling you shouldnt be cross selling so this works very well. There is no sale, simply aquiring information for a specialist to follow up and everyone wins.

[dlvhi]

Originally Posted by MrMack

I went through the archives for September and August on Ritter's site to try to find the $4 and $2 references without any luck. If you could point me in the right direction, I would appreciate it.

Thanks.

Search Commissions in the blog and look for June 10, 2009. It is in Black and White from CMS.

Makes me sick![/quote]

Thank you for going back and giving me the reference.

I did a little more checking on the site and found a June 28th item that had this info from CMS:

"Impending Guidance on Criteria for Paying Initial Compensation Fees in 2009
CMS has received feedback about confusion on whether agents and brokers should be paid an initial compensation fee for 2009 enrollments from a PDP to an MA plan. We believe our regulatory guidance is clear that for 2010 agents and brokers should be paid an initial fee for enrollments from a PDP to an MA plan. CMS is examining its guidance pertaining to 2009 enrollments and expects to release additional guidance shortly. Plans should contact their agents and brokers to inform them that CMS is reconsidering its guidance for 2009 and expects to release additional guidance shortly."

I don't remember seeing this before but it seems to indicate that the only question about initial payments was 2009, not 2010. Odd, really odd. Seems as if the 2009 guidance was aberation.

By the way, the same blog post (June 28th) indicates that implementation of the June 5th memo (the one provided on the June 10th post) has been suspended and that additional guidance would be issued.

I don't remember seeing the additional guidance but I am not as concerned about an increase in the $400 as I am in getting the $400.

Thanks again for your help.

[byarbor]

The federal "pay czars" are doing the best they can to put us out of business. Medicare Advantage has some real benefits for clients but there is such a disincentive to sell the stuff. I'll sell it again this year but plan to push more and more of my people toward Med Supps as I think that will be in their best long term interest.

[magagent]

Good, looks like everyone is seeing the light.

[sman]

Humana raised their commissions for 2010. New MA went from $320 to $350 and renewals went from $160 to $175. Of course, they are still lower than most other carriers. It will be interesting to see if there is any increase. I'm not holding my breath.