2009 MAPD - PDP Commissions

[patch36]

Yeah, we got all that last week here in meetings.

Standalone PDP's went up to $38 from $20.70, here. It does vary by state. MAPD PPO went up from $40 to $58 and the HMO dropped from $16 to $15.

Just got an email from Coventry that they are deferring the announcement of 2009 commissions for a week. Still no official word from Humana.

 

[Winter_123]

Those of us who have been in the senior market for more than a couple of months already know that, for the most part, their "leads" are going to be pretty crappy. The majority of their "leads" will be sent to every agent they have contracts with in a given area.

As you pointed out, subsidies are going to be cut regardless of what happens politically. We will see the benefits go down and the price go up on MA plans, especially PFFS plans.

The commissions are already being cut and I do not see that as a "bad thing".

I don't view any of that as being negative. On the contrary, I think it is pretty exciting. I do not have the option of selling HMO's or PPO's in rural Missouri. I will not sell PFFS plans. I do not market to people on Medicaid.

PFFS plans are not a good choice for rural Missourians who want the easy availability of quality health care and who want to be in control of their health care.

The agents who sell Medicare Supplements who I know have the most success when working outside of large metro areas. (Me included.) Areas that are beyond the reach of HMO's.

I believe PFFS plans were introduced to be sold to seniors who do not have the option of either HMO's or PPO's. When the benefits of their PFFS plan go south and the premiums go north what do you all think they are going to do after they realize the huge mistake they made?

Do any of you think these people are going to be great prospects? What options are they going to have? What kind of agents are they going to need to help them?

CMS and the canidates are working very hard to enabled me to dramatically increase my production and I really appreciate it. And guess what? I can call these new prospects or knock on their door 24 hours a day, 7 days a week, 52 weeks a year.

I love the senior market!

Frank, are you totally MA-free in your business practice. You are just offering supps?

Winter

 

[Frank Stastny]

Frank, are you totally MA-free in your business practice. You are just offering supps?

Winter

That is correct. Last year I sold two PFFS plans to a couple who got screwed out of their Med Supp by a United World agent. Long story but I will share it with you if you would like.

After a couple of months I was able to put them back into a Med Supp. It was kind of a hassle but in the end it worked out okay.

Those are the only two "MA" plans I have sold.

I just don't believe that they are good for rural Missourians. I have had a few who say that is all they want, PFFS, and I suggest that they contact another agent to purchase it from.

 

[GreenSky]

I have heard a rumor from a good source that Secure Horizons commissions will not be too much different than they are currently. The only real change will be renewals will obviously be much higher than current.

Second, the insurance carriers are "pushing back" at CMS about the inability to contact seniors. Don't know what will come of it since Congress passes a law, but we shall see.

Rick

 

[Winter_123]

That is correct. Last year I sold two PFFS plans to a couple who got screwed out of their Med Supp by a United World agent. Long story but I will share it with you if you would like.

After a couple of months I was able to put them back into a Med Supp. It was kind of a hassle but in the end it worked out okay.

Those are the only two "MA" plans I have sold.

I just don't believe that they are good for rural Missourians. I have had a few who say that is all they want, PFFS, and I suggest that they contact another agent to purchase it from.

Thanks. I sold MA last season but would prefer to let it all go and try to get some med supp business ramped up rather than one here and there- and then let the MA's go. I am about 85% there and will decide next week.I think time spend trying to make chickensoup out of chickenshit with MA's this enrollment season is probably just a distraction from time that would be better spent on med supps. That may not be true in urban areas as you suggest. Med supp is cleaner as far as what the client is getting and you are not playing dodgeball with CMS all the time. A lot of the med advantage companies are crooked too, whereas the med supps are just sorta "there" to be marketed well or not marketed well by the agent.


Winter

 

[patch36]

I have heard a rumor from a good source that Secure Horizons commissions will not be too much different than they are currently. The only real change will be renewals will obviously be much higher than current.

Second, the insurance carriers are "pushing back" at CMS about the inability to contact seniors. Don't know what will come of it since Congress passes a law, but we shall see.

Rick

Higher renewals will be a good thing. It seems that if the rules are followed, and I have my doubts, there will far less sold, so some of the agents who have made their primary living off of this product may have to learn new tricks and take on new products.

If Med Sups were not so expensive in the cities in MO, that is all I would be selling too.

 

[Winter_123]

I have heard a rumor from a good source that Secure Horizons commissions will not be too much different than they are currently. The only real change will be renewals will obviously be much higher than current.

Second, the insurance carriers are "pushing back" at CMS about the inability to contact seniors. Don't know what will come of it since Congress passes a law, but we shall see.

Rick

Secure Horizon's goal is to pump everthing through their AARP telesales or their captive force so they probably are not worried too much about commissions for independent agents. The more this thing doesnt work for agents in the industry, the more that they can run the whole show through TV ads referring folks to telesales.

 

[Frank Stastny]

If Med Sups were not so expensive in the cities in MO, that is all I would be selling too.

I stopped trying to sell Med Supps in the greater St. Louis metro area several years ago even before we moved to the country. I don't understand the huge difference.

The companies I have talked to about it claim that the doctors are a lot more expensive in "the city", that makes no sense to me at all. They also told me that rural people are healthier. That I can sorta kinda believe.

I just think they saw an opportunity to make more money but but maybe I'm wrong. I was wrong once before, I think.

 

[patch36]

I think city people are more used to going to the Drs. In the country they only go when they have to, eliminating all the costs that get them to the end result, the funeral. I also think city Drs. tend to run costs up more and have more ways available to them to spend your money. All of this tends to make medical treatment more expensive in the city per recipient. Or it could be something else...

 

[Frank Stastny]

I think city people are more used to going to the Drs. In the country they only go when they have to, eliminating all the costs that get them to the end result, the funeral. I also think city Drs. tend to run costs up more and have more ways available to them to spend your money. All of this tends to make medical treatment more expensive in the city per recipient. Or it could be something else...

Probably all of the above including the "something else".