It has nothing to do with the extra $100 and everything to do with the new regs next year... CMS sets a max commission, doesn't mean carriers have to pay it.
It has nothing to do with the extra $100 and everything to do with the new regs next year... CMS sets a max commission, doesn't mean carriers have to pay it.
Carriers are never required to pay a commission. Cigna stopped commission on PDP's quite some time back and only recently brought commissions back. Aetna created the SmartSaver plan and took away commissions.
Personally, I hope they don't take away commissions as I get a nice chunk of change each year from PDP commissions. But if they do, it will still be business as usual for me. I'll gripe and bitch and complain the whole time, but I'm still going to take care of my clients.
Carriers are never required to pay a commission. Cigna stopped commission on PDP's quite some time back and only recently brought commissions back. Aetna created the SmartSaver plan and took away commissions.
Personally, I hope they don't take away commissions as I get a nice chunk of change each year from PDP commissions. But if they do, it will still be business as usual for me. I'll gripe and bitch and complain the whole time, but I'm still going to take care of my clients.
Like most of you, I've been thinking about AEP this year and I'm trying to prepare myself for the "most disruptive" AEP in many years. My mind has been in turmoil about what adjustments I need to make. I've been thinking about timing of emails, what to say in emails and technological updates and new platforms. My business has grown over the last 14 years and it becomes increasingly more difficult to service the book every AEP. I have treated MAPD and Medigap/PDP clients the same. I have conditioned my attitude to think of them the same way over the years. Many of my Medigap policy holders convert to MAPD during AEP after 6 years. None of those "converts" have come back to bite me. I have almost zero LIS/SNPS and my semi-retired life is quiet and steady for 9 1/2 months of the year. I lose very little business compared to other agents during AEP, OEP and the rest of the year.
Here's why (I believe):
a) I send a simple email or hard copy letter to each client announcing ANOC and AEP. They receive no other communications from me during the year unless they reach out to me.
b) I call everyone once a year. Phone in September and early October. I talk about what I can talk about and I don't talk about the things I can't. Discuss ANOC (September) and talk about the Inflation Reduction Act and how it affects Medicare (they can Google this stuff) but it best it comes from you. The point is that we call them. Always leave a message if they don't pick up. If you have 1,000 or 2,000 clients...start in August. I promise, you'll be amazed that no matter the increase or change in benefit... MOST will stick with you. Those that don't, are not worth keeping.
c) If you explain Inflation Reduction Act (affects on Medicare) plainly and clearly, they will understand that 2025 plan movements in many cases will probably NOT improve their situations (PDP or MAPD). They will stay put or call you back to research for plan comparisons. Many will stay with plans because MOST perfer to not change...but explain IRA early...and some your AEP challenges will be eliminated.
d) Solve as many concerns on the phone as you can, as early as you can. I personally do F2F as much as possible. I'm busy and it's stressful during AEP, but it's worth it. Yes, I have a larger than average Medicare BOB.
e) I will change nothing. Of course, I'll make adjustments here and there. Why? Because AEP has always been hard work! I will not change technology, nor platforms. Looking up drugs is a pain in the ass, but... (Biden whisper)... "the client's dependence on our ability to give direction is the secret sause to our business". If I defer my clients more to Medicare.gov ON THEIR OWN or another "new system" to make my life easy (looking up drugs) it will destroy my usefulness to the client! I will use OEP (as an extention of AEP) to work to my advantage. But over all...I WILL DO BUSINESS AS USUAL and treat this AEP no differently than others. In January we will see whose right.
37 years in the insurance business. 14 years in Medicare business.
