2009 MA Commissions

[midwestbroker]

I was talking to one of my agents who brought this to my attention (I overlooked it). This is from the CMS release on 10/8/2008:

Agent/Broker compensation – On page 22 of the September 15, 2008, guidance document, we established a process for transitioning to the new compensation structure in the first year in which any movement of a beneficiary in 2009 would result in the agent/broker receiving an initial compensation amount. In 2009, CMS and the plans have insufficient information to reliably designate a beneficiary for an initial or renewal enrollment until our systems can be programmed to provide this information. Since we have become increasingly concerned about the potential incentives for agents/brokers to “churn” beneficiaries in order to receive
the initial compensation amount, we have decided to transition to the new compensation structure by requiring that renewal compensation amounts be paid for all beneficiary enrollments in CY2009. We will consider this the first renewal year for all enrollment changes. Plans that pay the renewal compensation amount for enrollments in 2009 will still be required to pay renewal compensation for four additional renewal years if the agent/broker is still in good standing with the plan and the State, and the beneficiary is still enrolled in the plan. Plans should establish a first year and renewal/replacement compensation structure for 2009 using our rules for calculating the compensation. The plans would not be paying the first year amount and would only pay the renewal/replacement amount. Due to the recent HPMS email that delayed the date on which plans’ compensation structures would be set, and the new guidance provided in this memo, plans are now expected to have their compensation structures in place no later than October 15, 2008. This includes the actual compensation amounts as well as the structure.


So, what this is saying is that all 2009 MA's will be paid only renewals, no initial first year commissions.

Now I am curious as to what the carriers are going to do for agent compensation.

 

[policy doctor]

Goodness! I confess I just skimmed over the headlines, and have not read the rules in their entirety. Lazy enough to wait for the FMO's to release the commission news.

But this is going to kill any incentives to sell this to existing clientele. And unless the companies provide some leads, agents won't pay the bucks for reply mail for a problematic product.

Well that lays to rest their concern about "churning" existing business.

 

[patch36]

Is that saying we will be paid half commission for all enrollments in 2009?

 

[kdover]

Is this not saying that existing clients that we are currently recieving renewals on be "changed" to the new renewal structure? Therefore discouraging the churning? That would make the most sense, if they are wanting discourage the stampede of switching this season.

 

[AgentBartlett]

One of West Michigan's regional HMOs told me that the commission for 09 is $350 first year "bonus" and $150 each yr. for the next 3 yr. fwiw
- - - - - - - - - - - - - - - - - -
CORRECTION; $300 first year

 

[midwestbroker]

From what I understand, from the bold section, is that any 2009 enrollment will be considered a renewal.

So, if Mr. Smith turns 65 in January, and he elects a MAPD plan, we will be paid a renewal, rather then a first year commission.

If that is the case, I am sure the carriers are scrambling to do something to keep agents interested.

 

[patch36]

From what I understand, from the bold section, is that any 2009 enrollment will be considered a renewal.

So, if Mr. Smith turns 65 in January, and he elects a MAPD plan, we will be paid a renewal, rather then a first year commission.

If that is the case, I am sure the carriers are scrambling to do something to keep agents interested.

That is half commission according to the rules.

AgentBartlett. That can't be right. It is 5 years of renewals, the question seems to be whether renewal commissions start year 1 or year 2 and last 5 years, not 3.

 

[Winter_123]

If that is the case, I am sure the carriers are scrambling to do something to keep agents interested.

I would be less than sure.

They will just pump more through telemarketing and create independent, captive whatever designations for agents and then promise them leads and lots of agents will fall for it until they find out it didnt work as planned but once again the carrier got through another enrollment season. They are doing that anyway, they will just it for another season or two as they just react to congressional and cms changes in MA's. The carriers only think from one season to the next and what does it take to hook some agents for a few months before disillusionment sets in. Next season they have something different and it starts all over again.

MA agents are just temp workers/guest workers for the carriers. Maybe the Man will be good to you one season, maybe not. The Man is not thinking about you.

If carriers do anything it will be the basic leads-for-peanuts pitch and then the leads wont be there anyway and by the time everyone reacts to it, it will be a new season and the entire MA game will have changed again.

 

[insurance0707]

The MAPD plans that I wrote in 2008 only paid $200 1st year commission, $50 second and $0 3rd. It was a great plan but low commission. (It's not that I didn't get a good contract, that's what everyone got). If they want to count 2009 as 2nd year renewal under this levalized system, wouldn't it turn out better for us, I might actually get higher renewals then I were to get under the old system...if they're trying to make things retroactive (i.e. 2009 would be 2nd year) then they should adjust the renewals for plans that we wrote in 2008 also

 

[scottfree]

I think that the companies will just go level commissions from day one. $300 first and the following 5 years. At least that is what I am kinda hoping the commissions will be. Each company will have their own structure.

I heard from my upline that one company was going level at $330 for a GA. That was before they delayed again until the 15th.

I am going to continue to set appointments and do business as usual. I still believe that I will do well this year and will reevaluate what my plans are for the future in March 09.