Required reading: MA compensation

retread · 10-31-2008, 10:27 AM

I think the link found under the post by Wellcare FMO regarding the Humana letter to CMS should be required reading for all agents in the MA market.

You will note that the Humana spokesman puts the level of commission they support at 4% of the "monthly government capitation rate paid to plans" and goes on to put that %-age at a dollar amount of $338. Simple math will tell you that they are getting $8450 (low-end... that means they make more on some plans).

A commission of $500 comes close to 6%. That the "tool" at Humana wants to lower our rates 2% shows you how important these percentages are. It just so happens the compensation they want to fix for FMOs at $200 comes to 2%! So, they want to make sure independents don't make more with a direct contract than what they would get through an FMO... (IMHO).

I had made an educated guess at these figures and made some comments about this in former posts. This is the first time I have had solid figures to back up my claim.

Agents armed with this information will be better informed when it comes to contract negotiations.

BTW: It did not escape my attention that the "tool" appeals to AHIP as an ally in his endeavor. We need to keep this in mind, also, when joining supporting organizations. This trade association obviously leans to the carriers... not an association necessarily in my favor.

myinsurebiz · 10-31-2008, 12:34 PM

Glad I don't sell this stuff anymore . . .

You guys can have it all!

Tom

MedSuppPro · 10-31-2008, 09:42 PM

Originally Posted by myinsurebiz

Glad I don't sell this stuff anymore . . . You guys can have it all!

Tom, Tom, Tom...

Tom-The-Insurance-Man, you're next! Don't you get it!

You can't run from this issue.

They will have your operation next! Trust me...

This is clearly why you, Frank, and all of us, need to recognize that Humana is yet another betrayer of the free market system. They are trying to block the flow of goods and services in order to protect their bottom line. And once they get their restricted market in place, history will repeat itself! You'll be next!

Humana

Busted

retread · 11-02-2008, 09:45 PM

It is too bad I had to remove the link to the Humana letter. It would be nice to refer to it at this point.

What I have found out recently, is that it was Humana that started the bidding war for agent commissions on a conference call to FMOs from CMS back on Oct 15th. They were the first to propose a commission of $500....

Now they feign that agents are paid too much and seek to lower them!! What kind of logic is this? Did they not expect that their competitors would match them?

*midwestbroker* · 11-03-2008, 11:54 AM

Humana has a lot of middle management and some of the worst communication internally. Does not surprise me that one hand wants high commissions and the others wants lower.

Do we know when we will know anything about commissions?

GreenSky · 11-03-2008, 12:08 PM

Originally Posted by retread

It is too bad I had to remove the link to the Humana letter. It would be nice to refer to it at this point.

Why did you have to remove the link?

Rick

*midwestbroker* · 11-03-2008, 01:47 PM

I just saw a copy of the letter Humana sent.

They basically say that their sales force is the best choice for beneficiaries to use.

Yeah...they never break the rules...like not using the scope of appointment form for the first 2 weeks...oops...did I write that?

retread · 11-03-2008, 01:52 PM

Originally Posted by GreenSky

Why did you have to remove the link?

Rick

I was asked to. (Nicely)