Trying to Sell a Medicare Book

[richmond_ins]

I have a book of business with UHC. I recently switched to an FMO, but I was direct to UHC when these clients were written. The book currently produced about $ 1600.00 / month. 75% is MA the other 25% is supps and PDP. Renewals will kick up some in 2013 because of business that was sold in 2011, but not yet in renewal. I need to sell the book or get a loan against future receivables because I need immediate cash.

I have tried Oakstreet Funding, Access Capital and TWG. Does anyone have any other suggestions?

I would appreciate some opinions concerning the value of the book. It will produce $ 14000.00 in income before the end of this year. At 50% renewal, it will produce about 16000.00 next year (considering the 2011 sales not currently in renewal.)

Thanks for the help.

 

[jacobtn]

What state is the biz is? Cant see much value on med advantage business, too much attrition.

 

[Frank Stastny]

What state is the biz is? Cant see much value on med advantage business, too much attrition.

If renewals don't start until 2013 why would someone pay money now on the outside chance that the business will still be on the books when renewals MAY begin. Putting money up now when income will not be realized until next year sounds like a hell of an idea for the seller.

 

[Josh]

If I may, what is the purpose in selling it? Do you not want the residual income? Anyone with any amount of savvy is going to think long and hard before paying a large some of money for MA renewals. That's a heck of a gamble I probably wouldn't even take for 1X FYC.

Any buyer would also have to get contracted and certified with all the MA carriers presuming the MA carriers will change the AOR. A lot of ifs in this situation.

 

[junkman]

Anytime someone asks me for a loan I say "what would you do if I didn't have the $$?" Once they answer, I say "Do that."

As a buyer, you would have to discount so much that it is a really bad deal for you. Short of buying life saving med for my family, there is nothing that urgent.

You projected $14,000 income this year. Take that entire amount and throw it against the problem as it comes in.

 

[yogooglethis]

I have a book of business with UHC. I recently switched to an FMO, but I was direct to UHC when these clients were written. The book currently produced about $ 1600.00 / month. 75% is MA the other 25% is supps and PDP. Renewals will kick up some in 2013 because of business that was sold in 2011, but not yet in renewal. I need to sell the book or get a loan against future receivables because I need immediate cash.

I have tried Oakstreet Funding, Access Capital and TWG. Does anyone have any other suggestions?

I would appreciate some opinions concerning the value of the book. It will produce $ 14000.00 in income before the end of this year. At 50% renewal, it will produce about 16000.00 next year (considering the 2011 sales not currently in renewal.)

Thanks for the help.

I could be mistaken but I don't believe UHC allows you to sell your book of Medicare business and even if they did I don't think the buyer would be able to call the clients because they didn't actually enroll them with UHC.This may even extend to the Med Supp clients because even though CMS still permits cold calls for Med Supp UHC doesn't allow it for the AARP Med Supps.The buyer of your book of business could send a letter to your clients but then there is HIPPA issues to deal with.

Email the sales prevention dept...duuuuh!... i mean the the compliance dept of at : [email protected] to get the answers

 

[richmond_ins]

The purpose in selling it is I need the money. I would prefer to keep the stream of income, but that's not the point. Why I need the money isn't really relevant to this discussion.

I was just looking for someone who may be interested in making an offer. I appreciate the "financial advice" on how to handle the issue but, frankly, "junkman" your response is just that... "junk".

UHC does allow the transfer of a book to another agent. I asked them about it and got the necessary forms.

Jacobtn, the book is all Virginia clients.

 

[G.Gordon]

Richmond,

Be sure you've called the other party in this transaction before you waste your time looking for a buyer. That other party is UHC. Some companies don't allow such transfers of books to other agents, period. I was faced with a tough financial issue several years ago, had a nice stream coming from a carrier, thought about selling, consulted with the carrier and got informed that would be impossible.

Now, glad I didn't. That has been almost a decade ago, things are MUCH MUCH better for us and we are still getting paid from that carrier and have not produced for them in that amount of time.

 

[DS4]

In my opinion, the only part of your block that poses any value is the med supp portion.
The MA/PDP portion is too tumultuous.

 

[sman]

Richmond,

Be sure you've called the other party in this transaction before you waste your time looking for a buyer. That other party is UHC. Some companies don't allow such transfers of books to other agents, period.

I guess you missed this part of his post:

"UHC does allow the transfer of a book to another agent. I asked them about it and got the necessary forms."