Get rid of lock-in and require commissions to be earned on a monthly basis. Problem solved.
Rick
A great solution, but I think there are a lot of forces trying to get rid of MA's or at least change them significantly in the future. The next pres. has already said he is cutting funding. The plans, commissions, and marketing will be radically different in 2011.
A great solution, but I think there are a lot of forces trying to get rid of MA's or at least change them significantly in the future. The next pres. has already said he is cutting funding. The plans, commissions, and marketing will be radically different in 2011.
Hope I'm wrong, but I think we're basically out of business now.
OK -- Clinton signed the BBA of 1997 and started round two of these crap Choice Plans. Then Bush2 took over and inherited a major shut down of the Choice Plans. Now we are in Round 3 and we are seeing some cracks in the MA program.
The next president has said he will cut $15 billion out of the MA program. But, how will they get the 1965 Mustang on the 2009 chassis. The answer is and remains managed care. (retread -- I don't like managed care or HMO's)
One of the next financial crisis's the next president will face is Medicare. $15 billion will look like a bargain! Having a chassis in place called Medicare Advantage will be the only way to graduate 44+ million seniors towards managed care. And like it or not, this is one of the few options left to help manage costs. The Part C MA program has a managed care system that is already in place. It has been introduced and has been gradually forced or sold to our Medi eligibles.
Again, I don't like seniors in managed care, and a lot of them are dead set against it. Yet, without it, we end up with a failed government entitlement.
Not on "O"'s watch. It will not happen. Who's going to tell the 12 million "O" fans whom are currently on MA plans that "O" cut their zero premium plan? And that their co-payments are greater then Original Medicare? I don't doubt that there will be some changes.
No, Greensky your still in the biz! Assume that things will turn around and get out and see all your immediate need clients for the next 60 days. That's what I'm doing and they really do humble me. Who knows, maybe I'll get paid!
HUMANA may want CMS to pound us with FMO 40/60% Agent splits. But, CMS on October 17th addressed this issue and let's hope they stick to it!
-------------------------------------------- COMPENSATION: OCTOBER 17, 2008
CMS does not differentiate between agents, brokers, general agents..., ect. It is the Medicare plan's responsibility to ensure that all their contracted sales staff compensation levels abide by the new MIPPA guidance.
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And besides, why should this process start from the bottom up as HUMANA has requested. All MA carriers should follow a loss ratio percentage. For every dollar that is paid into the carrier, the carrier needs to pay out XX%. Whatever the carriers wants to expend for 1/2 hour infomercials and agents with or without FMO's is not something CMS wants to get involved with. CMS should simply start from the top and the rest will work down. Simply place the commissions at level and let the carriers decide the length of renewal years.
The truth is if you paid us $20 a year you still would have marketing violations. What is needed is some good old fashion enforcement. And some tough love, for HUMANA. CMS should "set it and forget it"! It’s time for some HUMANA slicing and dicing!
From what I read in CMS regs, they do not set an amount, just that matching commissions for FYC cannot exceed 200% of renewals. If carriers want to set a FYC at $500, then that would mean a renewal of $250.
What gets me, is that I interpret MIPPA to mean that all 2009 commissions should be at renewal rates... so if they are paying $500 that should mean that FYC can never exceed $1000! Surely I am wrong here! but don't tell me until after Christmas.... please.
All seriousness aside, I don't think CMS has any business telling companies what they must pay their sub-contractors. They have every right to establish their capitation rate, and there is where it should end.
If they were really smart, they would insist on tougher entrance requirements for agents... like the Marine Corp... we only new a few good men.
------------------------------------
Think you have guts? Committment? Consider this British Light Brigade during the Crimean war, when 1/3rd of them didn't come back alive:
Theirs not to make reply,
Theirs not to reason why,
Theirs but to do & die,
Into the valley of Death
Rode the six hundred.
Cannon to right of them,
Cannon to left of them,
Cannon in front of them
Volley'd & thunder'd;
Storm'd at with shot and shell,
Boldly they rode and well,
Into the jaws of Death,
Into the mouth of Hell
Rode the six hundred.
From what I read in CMS regs, they do not set an amount, just that matching commissions for FYC cannot exceed 200% of renewals. If carriers want to set a FYC at $500, then that would mean a renewal of $250.
It would mean that if the renewal was $250, the first year could be no more than $500.
If the first year is $500, the renewal could be anywhere from $250 to $500.
But, THAT WAS THE OLD WAY. Now CMS is looking into the actual amount we're going to get paid. So, we're likely to be screwed.
Coming from Humana, I can tell you that they have no problem throwing agents under the bus.
Commissions were a fight to get right, marketing was so-so, and the upper management was a brown nose convention (I did not fit in since I did not just bend over and take it).
They follow the infamous pyramid model:
Money floats up, crap rolls down and there is a prick at the top.
------------------------------------ I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale. - Thomas Jefferson www.mymidwestbroker.com
I am sure Humana has some great DM's out there. I know in KC they are burning bridges and do not seem to care.
They should however since it looks like they are going to loose the #1 slot to Coventry...
------------------------------------ I sincerely believe that banking establishments are more dangerous than standing armies, and that the principle of spending money to be paid by posterity, under the name of funding, is but swindling futurity on a large scale. - Thomas Jefferson www.mymidwestbroker.com
MedSupp Pro... I agree with you a good bit about "managed care". The term is an oxymoron because it doesn't manage anything, let alone health care. It was designed to stem the tide of rising health care costs back in the 70's, but instead has become the leading source of rising health care costs. Ever come across a doctor that posted his fee schedule? Or have him ask you, before prescribing an Rx, what drug coverage you had so he could prescribe a lesser cost drug if appropriate? How about informing you of where you might find a cheaper imaging center for that MRI he wants you to get?
People are so used to just having the insurance company pay whatever the doctor orders that they don't know how to "shop around" to find less expensive treatment, mainly because there is no incentive... they don't save anything because of the structure of "managed care" policies.
That's the reason HSAs came to the fore about 2000. Unfortunately, the wind is being taken out of the sails driving these plans up 'til now because of the current economic crisis. MSAs are the senior choice for HSA type plans... but who will be able to afford the High Deductibles now? If the MSA has a $0 premium for the HDHP, you still have to satisfy the $2500 deductible before you get reimbursement. The supply of people who don't have a problem paying $1250 in medical expenses (which are matched by Medicare's contribution of $1250 to their MSA) before getting 100% coverage is shrinking like a morning glory in the high sun.
Thus, the grand hope of MSAs has faded. We are left with "managed care" plans.... HMOs, PPOs, etc. etc. etc. As agents, we play the hand we are dealt. Your draw, and I raise you $1...
Re: HUMANA throws agents under the bus
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