Better Save Up for AEP

[mikedalton]

Just got the word that CMS has told the carriers that they can no longer pay commissions before the actual effective date. That simply means if you sign someone up for a mapd during aep with a Jan 1 effective date, you won't be pd until sometime in January. But, if you sign them up in Oct for a Nov effective date you'll get the prorated amount of 34.40. Or, you'll get 17.20 if you sign them up in Nov with a Dec 1 effective date. Of course, in the last 2 scenarios you'll start getting the renewal starting in Jan. Better start cross selling!

 

[sman]

Yeah we've discussed that here already.

 

[GreenSky]

Yeah we've discussed that here already.

And what was our conclusion after those discussions?

Rick

 

[rhcbp]

My conclusion is that CMS has no problem paying the Insurance Companies but think agents do not add any value and will try to screw them anyway they can.

I just wrote a 10/1 effective and got paid $63 instead of $532. Why would CMS want the insurance companies to hold onto my $469? How would they like it at CMS if midway through the year it was decided that they would not get paid in October, November or December, but they would get a big check in January? I have been selling sups and MAPD's for 8 years and can certainly survive. It will probably even be better for me, less competition.

 

[Newby]

Just got the word that CMS has told the carriers that they can no longer pay commissions before the actual effective date. That simply means if you sign someone up for a mapd during aep with a Jan 1 effective date, you won't be pd until sometime in January. But, if you sign them up in Oct for a Nov effective date you'll get the prorated amount of 34.40. Or, you'll get 17.20 if you sign them up in Nov with a Dec 1 effective date. Of course, in the last 2 scenarios you'll start getting the renewal starting in Jan. Better start cross selling!

On that product, don't you think that is the best way to go any way? Since people will sign up multiple times and only the last one counts, would you want to get paid on business that doesn't ever take effect and then have to write the check back?

 

[Norwayguy]

My conclusion is that CMS has no problem paying the Insurance Companies but think agents do not add any value and will try to screw them anyway they can.

I just wrote a 10/1 effective and got paid $63 instead of $532. Why would CMS want the insurance companies to hold onto my $469? How would they like it at CMS if midway through the year it was decided that they would not get paid in October, November or December, but they would get a big check in January? I have been selling sups and MAPD's for 8 years and can certainly survive. It will probably even be better for me, less competition.

How about years ago when CMS could not seem to decide what the commission should be and was still deciding during AEP. I would love for CMS employees to come to work and be told that their compensation is being changed to lower amount but we do not at this time know what it will eventually become. Don't fear the decision will be reached no later than 6 months from now. Oh and we expect you to continue to work your 40 hours per week (they are government workers) even though their pay will be withheld until the decision on comp is made and then it will take some time to rectify their timesheets so they may go 8 months without pay.

 

[WCMason]

My conclusion is that CMS has no problem paying the Insurance Companies but think agents do not add any value and will try to screw them anyway they can. I just wrote a 10/1 effective and got paid $63 instead of $532. Why would CMS want the insurance companies to hold onto my $469? How would they like it at CMS if midway through the year it was decided that they would not get paid in October, November or December, but they would get a big check in January? I have been selling sups and MAPD's for 8 years and can certainly survive. It will probably even be better for me, less competition.

That's not the reason at all. You are just going to be paid as earned - or a favorable to agents version of it - just like the insurance companies are now. CMS isn't fronting the carrier a year of payments.

 

[jdeasy]

How about years ago when CMS could not seem to decide what the commission should be and was still deciding during AEP. I would love for CMS employees to come to work and be told that their compensation is being changed to lower amount but we do not at this time know what it will eventually become. Don't fear the decision will be reached no later than 6 months from now. Oh and we expect you to continue to work your 40 hours per week (they are government workers) even though their pay will be withheld until the decision on comp is made and then it will take some time to rectify their timesheets so they may go 8 months without pay.

CMS doesn't give a **** about the commissions. They don't care when they are paid or how much of the capitation rate is paid as commissions.

Those are carrier driven decisions. Especially Humana. The carriers have done a good job of making agents believe that the blame lies with CMS.

As is evidenced by some of the comments here.

 

[sman]

My conclusion is that CMS has no problem paying the Insurance Companies but think agents do not add any value and will try to screw them anyway they can. I just wrote a 10/1 effective and got paid $63 instead of $532. Why would CMS want the insurance companies to hold onto my $469? How would they like it at CMS if midway through the year it was decided that they would not get paid in October, November or December, but they would get a big check in January? I have been selling sups and MAPD's for 8 years and can certainly survive. It will probably even be better for me, less competition.

Why do you think you are entitled to an advance of 12 months commission?

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On that product, don't you think that is the best way to go any way? Since people will sign up multiple times and only the last one counts, would you want to get paid on business that doesn't ever take effect and then have to write the check back?

Have you experienced this on a large scale? I've had it happen one time since MA began and it was fraudulent.

 

[Newby]

Why do you think you are entitled to an advance of 12 months commission?

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Have you experienced this on a large scale? I've had it happen one time since MA began and it was fraudulent.

I've intercepted a lot of MAPDs before they took effect. Many times I sign them up on an RX plan and sell them a sup. Other times a different MAPD. There are no replacement forms involved so I don't think the other agent even knows until after Jan 1st if he ever knows.

Happens to everyone sometimes I assume.