Below is a post I found about commissions on a FMO blog. He is usually pretty accurate. Looks like everyone will get years 2-6 commissions for ALL MA or MAPD plans this year. The good news is that companies have raised the renewal commissions. Like Frank says...good thing OEP is not a few weeks away!
There was CMS guidance on October 1st and then some changes were made on October 8th. You are correct that CMS cannot track which year in the cycle the Medicare Beneficiaries fall. Initially, they were going to pay FY commission on ALL 2009 enrollments and, hopefully, have a system in place by 2010 to track commissions (FY v. Renewal) going forward. The October 8th CMS letter changed this so that now companies must be RENEWAL for all 2009 enrollments. This includes “like for like”, Med Supp to Med Advantage and “Age-ins”. I’ve only seen one actual commission schedule–Cigna’s. The important thing to know is that in 2009, you will only get the 2-6 years of commission (which are actually years 1-5, but CMS is basically saying to skip the first year and go strait to renewal for everybody). This doesn’t sound too good, however, companies have increased the commission for years 2-6 to make up for the rule change. Clear as mud?
Below is a post I found about commissions on a FMO blog. He is usually pretty accurate. Looks like everyone will get years 2-6 commissions for ALL MA or MAPD plans this year. The good news is that companies have raised the renewal commissions. Like Frank says...good thing OEP is not a few weeks away!
There was CMS guidance on October 1st and then some changes were made on October 8th. You are correct that CMS cannot track which year in the cycle the Medicare Beneficiaries fall. Initially, they were going to pay FY commission on ALL 2009 enrollments and, hopefully, have a system in place by 2010 to track commissions (FY v. Renewal) going forward. The October 8th CMS letter changed this so that now companies must be RENEWAL for all 2009 enrollments. This includes “like for like”, Med Supp to Med Advantage and “Age-ins”. I’ve only seen one actual commission schedule–Cigna’s. The important thing to know is that in 2009, you will only get the 2-6 years of commission (which are actually years 1-5, but CMS is basically saying to skip the first year and go strait to renewal for everybody). This doesn’t sound too good, however, companies have increased the commission for years 2-6 to make up for the rule change. Clear as mud?
Am I to understand that you're saying that my renewal commissions will be increased on my current clients as long as they stay in the plan they are currently in?
Am I to understand that you're saying that my renewal commissions will be increased on my current clients as long as they stay in the plan they are currently in?
No, wait...
The answer is [COLOR=darkgreen]NO, NO, NO, NO.[/COLOR]
Only works when you change someone from another carrier's MA plan. Then you get renewal based upon the current schedule (from what I understand).
Rick
------------------------------------ ILIAA
Training, Community, Support, and Success Independent Life Insurance Agents Assn rick@iliaa.org
The answer is [COLOR=darkgreen]NO, NO, NO, NO.[/COLOR]
Only works when you change someone from another carrier's MA plan. Then you get renewal based upon the current schedule (from what I understand).
Rick
Then, what would any agent's incentive be to leave a person in a plan they are on now? Wouldn't this rule promote the churning that they claim they want to stop?
Just say the plans are close, putting someone in a clearly inferior pan would wrong under any rule, but, in a case where the plans are close enough where you could make a case for either, why wouldn't you then switch them for the new commission rate? I mean, I have the same loyalties to these companies that they have to me.
Really, we are back to square one. Nobody knows what the commissions are or how they will be applied. Unless one works for Parker and Asses, in that case, you know exactly what you will get.
Am I to understand that you're saying that my renewal commissions will be increased on my current clients as long as they stay in the plan they are currently in?
I was told specifically that these commissions/renewals will apply to 2009 plans going forward. Not retroactive to anything you have already written.
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To be truly independent, an agent should not be dependent on a government bureaucrat for contracts or commissions.
Then, what would any agent's incentive be to leave a person in a plan they are on now? Wouldn't this rule promote the churning that they claim they want to stop?
Give the man a cigar! You hit the nail on the head.
I'm reviewing all the plans I wrote in LA County the past few years to see if I can move them - churn them if you will. Obviously can't do it unless it is not a negative.
It's interesting that I'm now looking for reasons to move people unless it would be bad for them rather than trying to really improve their plan. I'm almost ashamed.
MA commissions info.
, all you Rent-A-Agents![/COLOR]
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