I think so too, there is alot of contradictory wording throughout, but seems like they are trying to say the FMO cannot contractually or otherwise incentivize the agent to favor one carrier over another, and they want the broker to have the capability of going without the FMO, but the FMO can still be paid by carrier if they bring value.
Is the New 2025 CMS Rule for Agent compensation actually GREAT news for AGENTS and FMOs?
- Thread starter FMOadvisor
- Start date
Google $1300 Medicare advantage commission and it will pull up . So here we are again . The agent gets screwed with no marketing money or hra fee and the fmo wants there’s comp? I can tell you this 100% if the fmo gets there comp my substantial marketing money will be coming out of there overrides .
Packerland
Guru
- 518
I'm not sure why you even go through an FMO you should get all of your contracts direct with the carriers. Seems FMO's bring you little to no value.
Certain FMO’s will call and ask if there’s anything they can do for me. I usually don’t answer and they’ll leave a message. Delete and move on. Don’t need any help. Thanks.
I don’t get the concern over what an FMO makes. Unless I was an FMO
They bring some value and it’s why I said they should make $100 an app
Packerland
Guru
- 518
Saying companies shouldn't earn more than a certain amount misses how the free market naturally works. It's like forgetting that the chance to make more money pushes companies to come up with new ideas and value ads, that competing FMO’s helps keep margins fair, and that when companies do well. Basically, companies should be free to make as much as they can because their success means they're doing what people want and like.
Let's be clear: our deals with an FMO should be reflecting our actual value based on production levels, number of agents, and overall contribution. For instance, if I'm funneling 1000 applications a month their way, it's only reasonable they earn, say, $25 per app. But if I'm only managing to sell 4 apps a month, then sure, let them take $300 per app. Our earnings should mirror what the market dictates, not be tethered to some arbitrary figure an agent dreams up as their worth.
That’s were your wrong . Mapd is not a free mkt . Carriers have gamed the system stealing from taxpayers . Your overrides are paid by the taxpayer . How’s it a free mkt making 80% overrides on an ins product ?This crazy money over the yrs has caused this mess were in . Cms has spoken .
Packerland
Guru
- 518
Don please spare me your soap box... you have benefited more than most with this current system.. CMS has spoken for sure but what have they said in those 1000 plus pages ... but I found the following interesting in reading those pages.
When it is all said and done the carriers are going to be the ones to determine how this all trickles down based on how they interrupt the rules.
Comment: Several comments expressed confusion about whether this payment is an “allin cap” that is intended to include all fees paid by an MA organization to an agent, broker, or other TPMO, and what that would mean for payments related to marketing activities.
Response: This proposal, and all agent broker compensation rules at §422.2274(d) are limited to independent agents and brokers, and do not extend to TMPOs more generally. Therefore, this policy represents a limitation on payments in excess of those paid under “compensation” only for commissions paid for enrollments to independent agents and brokers. Though we are continuing to consider future rulemaking in this space, our current policy does not extend to placing limitations on payments from an MAO to a TPMO who is not an independent agent or broker for activities that are not undertaken as part of an enrollment by an independent agent or broker.
After considering public comments on this proposal, for the 2025 contract year, we are finalizing at §422.2274(a) a one-time FMV increase of $100, which will then be added to the base compensation rate for 2025; the sum of the 2025 compensation rate and the $100 will form a new base compensation rate that will be updated annually according to our FMV updates described in § 422.312. We are also finalizing changes to §422.2274(d)(1)(ii) that beginning with contract year 2023, MA organizations are limited to the compensation amounts outlined in §422.2274(a).
Ok that’s basically saying an fmo cannot make an override on any type of volume based enrollment . So you honestly believe carriers are going to say packer land we’ll give you $300 k this qtr for licensing and training agents ( wink ,wink packerland we want 2k enrollments or next qtr we’ll only give you $200k). If cms see’s carriers circumventing the rules they’ll come down hard . Also you don’t think sharp agents like me are going to go to shop fmo’s to get our marketing money paid by the fmo ? We damm well know the carriers getting paid on apps written in tgis “side” deal . Top agents are a big value to them. Why would I stay at that fmo if I’m not getting some type of compensation benefit ? If I’m getting no more than “ street “ comp why would it matter what fmo I’m with ? What happens to the 1000’s of ga,mga and IMO’s that were getting paid underneath the fmo in overrides ? It clearly states no comp for any type of enrollment above street . I assure you carriers won’t risk BS and be in cms’s crosshairs .
Packerland
Guru
- 518
Carriers will be the ones that interept this rule.. they are the ones that have the most to risk….
Agents should watch this video below before they start spending that extra $100 watch the video below
Interesting take
