CMS asked to cap commissions

GreenSky

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When will these idiots learn that lock-in has caused most of these problems?

http://www.modernhealthcare.com/app...39979&nocache=1&nocache=1&nocache=1&nocache=1

Stark calls for cap on Medicare Advantage sales commissions


Posted: October 23, 2008 - 5:59 am EDT


Rep. Pete Stark (D-Calif.), chairman of the House Ways and Means Health Subcommittee, called on the CMS to cap Medicare Advantage sales commissions after reports that some health plans are paying higher broker commissions in a move he said runs counter to new federal regulations.


In a letter sent Wednesday to CMS acting Administrator Kerry Weems, Stark said that some health plans are offering commissions four times higher than they have in previous years, which could “lead to an unprecedented amount of churning of beneficiary enrollment this year in a way that is disruptive to their care and detrimental to their coverage.”

New regulations passed in September require the amount of money paid as a commission stay the same over five years. Before the new regulation, a plan could pay an agent $300 for signing up a new beneficiary and $100 for every year that person stays in the plan, Stark said. Over five years, the sales agent would make $700.

Now, though, some plans are paying a higher amount in upfront commissions, meaning that the sales agent stands to make much more over five years. “With this one-time-only opportunity to churn beneficiaries, and lock in high commissions for the next five years, it is reasonable to expect that we will see unprecedented plan changes this year unless CMS takes action,” Stark wrote. Stark said that the CMS needs to resolve the issue before the Nov. 15 open-enrollment period. -- by Matthew DoBias


Rick
 
With all of the trillons of dollars congress scwonders in pork pay off to their billionaire buddies they really make a big stink if the little guy has a opportunity to get a tiny slice of the pie.
 
When will these idiots learn that lock-in has caused most of these problems?

http://www.modernhealthcare.com/app...39979&nocache=1&nocache=1&nocache=1&nocache=1

Stark calls for cap on Medicare Advantage sales commissions


Posted: October 23, 2008 - 5:59 am EDT


Rep. Pete Stark (D-Calif.), chairman of the House Ways and Means Health Subcommittee, called on the CMS to cap Medicare Advantage sales commissions after reports that some health plans are paying higher broker commissions in a move he said runs counter to new federal regulations.


In a letter sent Wednesday to CMS acting Administrator Kerry Weems, Stark said that some health plans are offering commissions four times higher than they have in previous years, which could “lead to an unprecedented amount of churning of beneficiary enrollment this year in a way that is disruptive to their care and detrimental to their coverage.”

New regulations passed in September require the amount of money paid as a commission stay the same over five years. Before the new regulation, a plan could pay an agent $300 for signing up a new beneficiary and $100 for every year that person stays in the plan, Stark said. Over five years, the sales agent would make $700.

Now, though, some plans are paying a higher amount in upfront commissions, meaning that the sales agent stands to make much more over five years. “With this one-time-only opportunity to churn beneficiaries, and lock in high commissions for the next five years, it is reasonable to expect that we will see unprecedented plan changes this year unless CMS takes action,” Stark wrote. Stark said that the CMS needs to resolve the issue before the Nov. 15 open-enrollment period. -- by Matthew DoBias


Rick


Rep Pete Starke D Calif. maybe wants to use illegal immigrants to sign up MA enrollees.They will do it for 20.00 and no renewals !
 
Now were back to square one again, clueless on what the commisions will be and wondering how badly their going to butcher the commisions. They will probabley take away any incentive to help the seniors move to better plans after
increased premiums and less benefits for 2009. It seems like they are more concern with how much money the agents are going to make rather than whats best for the seniors.
 
Typical, throw money at the problem, churning, by paying the agents 400% of what they were making. That has to cost more than churning, which was to earn another comm. Now they will pay us not to churn. That's like paying farmers not to plant.

Really stupid.
 
Typical, throw money at the problem, churning, by paying the agents 400% of what they were making. That has to cost more than churning, which was to earn another comm. Now they will pay us not to churn. That's like paying farmers not to plant.

Really stupid.

Do you sell insurance?
 
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