Better Late Then Never?

Russ

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Florida
And it's almost March.......



"AdvantraRx: Compensation Finalized


Thank you for your AdvantraRx business. You've helped thousands of people protect their savings from the high cost of prescription drugs. And, you've been doing it without knowing what your compensation is.
The following is an update on your compensation for business written with a coverage effective date of Jan. 1, 2009 and after.
In late December, the Centers for Medicaid and Medicare Services (CMS) finalized their new compensation rules for the 2009 plan year. And, we recently completed our agreement with Coventry.
CMS changed the regulations on how health and drug plan providers can structure the compensation for agents and brokers by reducing existing compensation to enroll a client in a new plan. The intent is to prevent churning.
The following describes how Mutual of Omaha is paying AdvantraRx Part D prescription drug policy compensation to meet CMS regulations:
  • CMS requires that companies initially pay renewal compensation for policies with a coverage effective date of Jan. 1, 2009 and after, rather than first-year commission for all Part D policies
  • Once CMS identifies and then notifies us that a first-year commission is warranted, we are to retroactively pay agents and brokers the additional amount of first-year commission
  • These policies will be eligible for five years of renewal commission as long as the policy remains in force
  • For Part D policies not eligible for first-year commission, we only are allowed to pay the five years of renewal commission. The policy must remain in force for us to continue paying commission
  • CMS requires that renewal commission be no more, or no less, than half of the commission calculated for that client in the initial year of the commission cycle
  • For policies with a coverage effective date of Jan. 1, 2009 and after, if a client disenrolls from the Part D policy prior to April 1, we are required to recover all commissions paid on the policy, even if the client paid one to three months of premium. If the policy is in force on or after April 1 and then the client disenrolls, commission paid will be recovered for any months that the client was not enrolled but commission had been paid
As a result of the changes, we're currently updating our commission schedules with the new amounts for coverages effective Jan. 1, 2009 and after. You'll receive yours as soon as possible. By the way, commissions do not change on:
  • Part D business with a coverage effective date prior to 01/01/09
  • Medicare supplement or Medicare select policies written through Mutual of Omaha, United World or United of Omaha
Thank you for your continued business. Please call Mutual of Omaha's Distribution Compensation Support Center at 800-475-4465 if questions".....

from M of O's website.
 
Times like these, Mutual must be scratching their head asking the same question we are -- WHY? WHY offer these plans?

LOL They call PartD plans "policies". :D:D:D CMS violation!!! And they misinterpret the 5 years is per beneficiary and not per "policy"!

Russ -- What is Mutual paying per "policy"?
 
Times like these, Mutual must be scratching their head asking the same question we are -- WHY? WHY offer these plans?

LOL They call PartD plans "policies". :D:D:D CMS violation!!! And they misinterpret the 5 years is per beneficiary and not per "policy"!

Russ -- What is Mutual paying per "policy"?

They were paying me $49.08 per policy. I'm sure it's now around $27, maybe slightly lower. A few of the 19 they owe me on are first year eligible, plus they haven't paid renewals on any previously issued policies(2006-2008), since December.

Best commission I use to have was with AARP at $70 per policy.

NOTE: they just today paid December renewals.
 
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