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Old 08-11-2017, 12:07 PM   #1
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What is the FMO Business Model? What is the FMO Business Model?
First-time poster here, I'm a student working on a report about the brokerage agency industry.
I am curious about FMOs and how their business model works. I know CMS has regulations on how much a plan can pay an agent in commissions, but how do these "override" payments to agencies work? Does this not go over the "fair market value" that plans can pay, or is it coming out of what the agent can make?
I greatly appreciate any insight from you experts in the field!
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Old 08-11-2017, 12:31 PM   #2
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What is the FMO Business Model? Re: What is the FMO Business Model?
Originally Posted by johnnyutah View Post
First-time poster here, I'm a student working on a report about the brokerage agency industry.
I am curious about FMOs and how their business model works. I know CMS has regulations on how much a plan can pay an agent in commissions, but how do these "override" payments to agencies work? Does this not go over the "fair market value" that plans can pay, or is it coming out of what the agent can make?
I greatly appreciate any insight from you experts in the field!
Johnny,

Admin fees are distinct from agent compensation, so admin fees (or overrides) don't reduce agent comp.

Medicare marketing guidelines regulate both. Here is a link to MMG: https://www.cms.gov/Medicare/Health-...inal072017.pdf

120.4 covers agent compensation. 120.4.4 covers admin fees

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Craig Ritter, VP
Ritter Insurance Marketing

www.ritterim.com
www.medicarequoteengine.com
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