Med Advantage and FMO

[agentjhc]

What is the benefit, if any, of appointing for MA plans through a FMO rather than direct?

 

[Newby]

Training, leads, wal mart placement, etc. if any.

 

[Klutch]

Can you appoint with Humana/BCBS/Health Springs direct? Is there ever a situation where you'd get higher commission going through an fmo?

 

[plannerman]

Can you appoint with Humana/BCBS/Health Springs direct? Is there ever a situation where you'd get higher commission going through an fmo?

You will have to be a big hitter with anthem to get more. Humana tells me it's all about how many agents you have under you as to what contract you get. Even if you write 100s a year if you do it bye yourself you are going to get paid street, or that's what they told me.

 

[jason5436]

Here is an example. My FMO will pay half of my mailer cost if I or any of my downlines sell a total of 10 apps. This is up to $4000. That can be very helpful. Also quoting tools, Training, trips, other agents to talk to, advice. Contracting ETC.

 

[pbbaseball]

Here is an example. My FMO will pay half of my mailer cost if I or any of my downlines sell a total of 10 apps. This is up to $4000. That can be very helpful. Also quoting tools, Training, trips, other agents to talk to, advice. Contracting ETC.

It is just like buying insurance direct through the carrier why would you want an agent. because they are there and it cost you nothing more to use them, not to mention as you grow your Medicare book of business and team size, a FMO is more likely to give you higher contracts for other lines if you write a ton of other business with him.

 

[sman]

What is the benefit, if any, of appointing for MA plans through a FMO rather than direct?

Is there a carrier in particular in question?

 

[wehotex]

Can you appoint with Humana/BCBS/Health Springs direct? Is there ever a situation where you'd get higher commission going through an fmo?

Great Question. I've always thought that the carrier tells the FMO how many agents must be under the agent, which determines the amount that can be paid to the upline agent. Otherwise, it doesn't really matter how many a "solo agent" produces. He would still receive only "street rate". Isn't Medicare (CMS) strict in who gets what, unless you're the almighty FMO?
Some FMOs are better than others. Some will help you with mailers, but I'd ask them all of this before you commit to them. I just got out of one that basically gave me nothing and got into one that paid my E & O and AHIP (but a carrier already pays that for me) and agreed to help pay for mailers and other efforts. Those in that FMO are also salespeople, so understand more what an agent goes through in our crazy environment. Even though they kinda sell against me in a way, there is always somebody there to help with issues, even after 5. I appreciate those things so far.

 

[EltonHCP]

The best non-monetary value from an FMO is experience in the products you're selling. You want someone who will pick up the phone when you have questions.

The "hidden cost" for doing business with a FMO is that there are FMO's that take your money and make you assign commissions. Then there are those who pay you street value and don't make you assign commissions.

"Training" offered by some of the large FMOs in the area (southern CA) are the carrier-based meetings that any contracted agents can attend.

 

[healther]

Go direct if you can... unless you are a GA.