- 18,984
New CMS Rules
- Thread starter jdeasy
- Start date
- Thread starter
- #3
- 18,984
I got that same info. Since I am a writing agent, this was not good news. I have some companies paying less than $400. I sent them an email asking if they would move their's up. I already know the answer. This doesn't work in both directions.
This came from an FMO that I will leave unnamed....
"To date, these new regulations (commission caps) do NOT affect the up line over ride commission for GA, MGA, etc. in any way.
This “cap” only applies to the actual writing producer’s portion of the commission."
- 307
I guess what bothers me about this agent compensation issue is that it seems to never be brought to a conclusion.
Seems CMS is continually going after this issue because it is a "soft target". If agents were not in the mix, the plans would be spending more for advertising and hiring "home office" agents with very questionable results.
I would think the issues of double digit increases in drug pricing, cutting drugs off formularies, doctors and hospitals not accepting coverages (especially in the middle of the coverage period), 50% + cost increases by plans, and many other problems would take priority over what salesmen are being paid.
Last year I was working in a Wal-Mart store, where a competitor had a booth the previous year. A mental patient (and it was darn apparent he was a mental patient) came screaming at me that "we" had caused him to have a mental relapse. After getting him to realize that "I" was not "we", he was not nearly as ready to whip my butt. I actually think he had a gun in his coat pocket, because he kept his right hand in his coat all the time.
After getting him to slightly calm down, I found what had happened. The hospital where he had been getting mental treatment decided as of July 1, 2007 they were no longer accepting his plan. BUT nobody told him (if he would have understood is questionable), AND they kept treating him.
He had run up over $70,000 of bills with this hospital. He did not and could not pay, his plan did not pay because the hospital would not bill the plan, and Medicare would not pay because he had a Part C plan. Since nobody paid them, the hospital turned to a collection agency to collect from him. This was a very dangerous thing to do. If I had been the salesperson that enrolled him, I would have had a very bad situation on my hands--at no fault of mine.
The man still had his insurance, but nobody to pay the bills.
The point I am trying to make here is that CMS should be helping try to solve problems such as this instead of continually going after an agent's paycheck.
Seems CMS is continually going after this issue because it is a "soft target". If agents were not in the mix, the plans would be spending more for advertising and hiring "home office" agents with very questionable results.
I would think the issues of double digit increases in drug pricing, cutting drugs off formularies, doctors and hospitals not accepting coverages (especially in the middle of the coverage period), 50% + cost increases by plans, and many other problems would take priority over what salesmen are being paid.
Last year I was working in a Wal-Mart store, where a competitor had a booth the previous year. A mental patient (and it was darn apparent he was a mental patient) came screaming at me that "we" had caused him to have a mental relapse. After getting him to realize that "I" was not "we", he was not nearly as ready to whip my butt. I actually think he had a gun in his coat pocket, because he kept his right hand in his coat all the time.
After getting him to slightly calm down, I found what had happened. The hospital where he had been getting mental treatment decided as of July 1, 2007 they were no longer accepting his plan. BUT nobody told him (if he would have understood is questionable), AND they kept treating him.
He had run up over $70,000 of bills with this hospital. He did not and could not pay, his plan did not pay because the hospital would not bill the plan, and Medicare would not pay because he had a Part C plan. Since nobody paid them, the hospital turned to a collection agency to collect from him. This was a very dangerous thing to do. If I had been the salesperson that enrolled him, I would have had a very bad situation on my hands--at no fault of mine.
The man still had his insurance, but nobody to pay the bills.
The point I am trying to make here is that CMS should be helping try to solve problems such as this instead of continually going after an agent's paycheck.
- 11,995
The agent level is really what they seem to be concerned about. In some of the memo's they've gone as far as to say that actual marketing expenses such as mileage can be reimbursed in addition to the commission. The GA's will still be able to get overrides an it's very likely that carriers will start trying to find ways to subsidize marketing and other sales activities. FMO's are even able to get extra money for "administrative fees" in addition to the commission.
Good news for the agents and brokers, carriers know how important their distribution partners are. As guidance continues to come out from CMS you'll see carriers doing all sorts of things to try to help agents stay in the business.
I'll believe it when I see it.........
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