ALERT RE: 1st YEAR Commissions. MUST READ

[moonlightandmargaritas]

I did contact my DOI and I was told (I'm in Florida) that if I didn't get paid commissions it is a civil matter and I would have to retain a lawyer and settle it in court, the DOI only handles complaints by customers

The Texas Department of Insurance Fruad Hotline is 1-888-327-8818. Each state has one, and they have to follow up every complaint.

I have posted it what seems like a thousand times, but let me try once more:

Going to your state's department of insurance over commission issues is a waste of time.

Regardless of whether it's fair or right, they cannot, and will not get involved in compensation disputes.

 

[HolyRoller]

For what it is worth...I think it is a BIG step, in the right direction.....2 legal actions were filed yesterday, by FMO's from Cali against UHC, concerning 1st yr comm. This will spur a response, and hopefully get us our $$$. This comes from an iron-clad source.

Folks, don't take this lying down...that appears to be a prominent response so-far. I have been informed that complaints are MUCH-LOWER than anticipated by the Producer Help Desk operators. Y'all need to get loud.

 

[MedSuppPro]

FMO's jumping into the fire. HolyRoller, these are the FMO's I want to contract with. Most FMO's are sheepish cowards who skim from thou low life omega agent's.

Let us know who thine Alpha FMO's are!

 

[HolyRoller]

FMO's jumping into the fire. HolyRoller, these are the FMO's I want to contract with. Most FMO's are sheepish cowards who skim from thou low life omega agent's.

Let us know who thine Alpha FMO's are!

I will ask. I am contracted directly with UHC, not an FMO. The info I go was from a Management Employee. He was informed about the legal action by a higher up, in a Mgmt. conference this A.M. I do think when the dust settles, we will be paid. The big question is...WHEN.

 

[Russ]

I will ask. I am contracted directly with UHC, not an FMO. The info I go was from a Management Employee. He was informed about the legal action by a higher up, in a Mgmt. conference this A.M. I do think when the dust settles, we will be paid. The big question is...WHEN.

That's somewhat good news.

 

[stormtracker]

I have posted it what seems like a thousand times, but let me try once more:

Going to your state's department of insurance over commission issues is a waste of time.

Regardless of whether it's fair or right, they cannot, and will not get involved in compensation disputes.

MOONLIGHT's right-- if you file a complaint through your DOI about commissions you will get a form letter and nothing else-- ever...

 

[policy doctor]

The more people who know about this commission issues with CMS and these carriers, the better for the public and agents.

People are sympathetic when folks get skunked out of their pay....and as the economy worsens and more peeps look for jobs, they should know who or what to avoid.

At least the commissioners can't deny there weren't issues within the Medicare sales market and the agents. But it takes more than 10 agents....

 

[Joe Moore]

I have put this on another thread, but here is what I wrote to my congressman, thought someone may pick up on the idea and bombard congress:

Phil,
I am Joe Moore of Morristown. I think you have talked to my son, Greg Moore a few times concerning healthcare in the last few months. My sons and I own an Insurance Marketing Organization (IMO), known locally as Tennessee Senior Benefits, and nationally as National Senior Benefits (www.nationalseniorbenefits.com)
We have become very active in the Medicare Advantage and Part-D Markets, offering products locally to Medicare enrollees, and contracting agents nationally to offer the products of companies such as AARP (United Health Care), Coventry, Blue Cross, etc.
As you may or may not be aware, contracted agents by these companies commissions are basically being controlled by Center for Medicare Services (CMS) and are just the past week getting paid for what CMS is calling a TRUE-UP commission. Agents are in shock as to what is CMS's interpretation of what commissions should be. Most agents (including myself) are looking at about 25% of what we thought it would be.
January 16, 2009, CMS put out the following memo:
CMS requires organizations to pay the renewal rate for all enrollments except those of beneficiaries newly entitled to Medicare or enrolling in an MA plan, Cost plan or PDP for the first time. This means for example that for 2009 MA plans with an initial year commission amount of $400 will pay a commission of $200 to their agents and brokers, unless the enrollment is for a beneficiary newly entitled to Medicare or enrolling in a MA plan for the first time.
Emphasis should be placed on the verbiage "enrolling in an MA plan for the first time". Because CMS has now decided if an enrollee was in a PDP and now newly enrolled in a MAPD, the agent is only entitled to a "Renewal" Commission".
Agents are contracted with the respective companies, and the contracts all show the earnings as much higher than agents are being paid. By keeping the agent's money they have worked for and earned, it is not saving the government a dime. The companies get to keep the extra money and it goes to their bottom line?
I am looking at this issue as not even being close to fair for the agents. They have already performed the duties they were contracted to do, and now (6 months later) they are getting paid about 1/4th of what they were contracted to be paid. A lot of agents have probably more money invested in the marketing than they will receive back. Ethically, I think CMS appears to have some issues that should have to be addressed.
Also, since when does the US Government control the pay of sub-contractors to get the job done. Agents are sub-contractors to the contracted insurance companies.
The January 16th entire memo can be read at:
http://www.cms.hhs.gov/ManagedCareMarketing/Downloads/CompStructureRepMemo_011609.pdf

 

[dlvhi]

I think it will be a good case. CMS had the list right and at the last minute someone got them to include part D as a MA plan which it is clearly not and sent out a new list.

Jim Sowder
Family 1st Insurance Brokerage
304-640-8914
[email protected]

Hey Jim, it sounds like you have information that the change was prompted by the companies, and CMS didn't include PDP the first time around. If you have that information, could
you share it?

There has to be legal action regarding this. In addition, we should all write our congressional reps.

I am thinking about making a FOIA request with CMS asking for all correspondance between CMS and the carriers regarding this issue. If we find anything between the carriers and CMS it should go into the hands of the NY AG immediately.

There is another thread that discusses this issue and only refers to UHC. Are other carriers involved?

Thanks

For me, the issue affects over 100 cases.....

 

[NBurton]

Hello All,

I too am one of the many effected, and I will to call, write, and fight to correct this injustice.

I intend to spend today writing my Congressman, Senator, and Carrier(s) to add to the number of letters of discontent.

Those effected must write to make our voice heard on this issue. Your single letter/call does make a difference.

Let's not forget to notify the National Assoc. of Health Underwriters also.

Also, Please take the time to review your statement(s) for not only was I chargedback for enrollees from Orig Med W/PDP, but for those I enrolled that left Employer Group Plans.

Apparently this last report has errors as well...