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Below is a post I found about commissions on a FMO blog. He is usually pretty accurate. Looks like everyone will get years 2-6 commissions for ALL MA or MAPD plans this year. The good news is that companies have raised the renewal commissions. Like Frank says...good thing OEP is not a few weeks away!
There was CMS guidance on October 1st and then some changes were made on October 8th.
You are correct that CMS cannot track which year in the cycle the Medicare Beneficiaries fall.
Initially, they were going to pay FY commission on ALL 2009 enrollments and, hopefully, have a system in place by 2010 to track commissions (FY v. Renewal) going forward.
The October 8th CMS letter changed this so that now companies must be RENEWAL for all 2009 enrollments. This includes “like for like”, Med Supp to Med Advantage and “Age-ins”.
I’ve only seen one actual commission schedule–Cigna’s. The important thing to know is that in 2009, you will only get the 2-6 years of commission (which are actually years 1-5, but CMS is basically saying to skip the first year and go strait to renewal for everybody).
This doesn’t sound too good, however, companies have increased the commission for years 2-6 to make up for the rule change.
Clear as mud?
There was CMS guidance on October 1st and then some changes were made on October 8th.
You are correct that CMS cannot track which year in the cycle the Medicare Beneficiaries fall.
Initially, they were going to pay FY commission on ALL 2009 enrollments and, hopefully, have a system in place by 2010 to track commissions (FY v. Renewal) going forward.
The October 8th CMS letter changed this so that now companies must be RENEWAL for all 2009 enrollments. This includes “like for like”, Med Supp to Med Advantage and “Age-ins”.
I’ve only seen one actual commission schedule–Cigna’s. The important thing to know is that in 2009, you will only get the 2-6 years of commission (which are actually years 1-5, but CMS is basically saying to skip the first year and go strait to renewal for everybody).
This doesn’t sound too good, however, companies have increased the commission for years 2-6 to make up for the rule change.
Clear as mud?