Birthday Rule spreading? How much will this affect my business?

greater concern in this business is the diminishing or disappearing commissions on Med Supps after 5 or 6 years.

Keeps you active in the business rather than living off residuals.

I have been in the health insurance business as an agent for over 30 years and several more before that as a wholesaler on salary + bonus.

Individual major med was usually offered on a hi-low commission, 1 year or 3 at the high rate. Same was true for small group with 3 years being more common. Large group plans typically paid a flat level commission.

MA plans are unique with their bottomless bucket of commissions + the ability to churn policyholders without underwriting. I guess that is a good business model as long as policyholders don't care about being forced to let an insurance carrier direct their care and change plans almost every year.

FWIW, my cash flow has grown almost every year since 1993 when I left the corporate teat and went on straight commission.

I had a major drop in 1997 when my primary carrier went out of business and it took a few years to regain lost ground. This was followed with a very slight drop in compensation in 2014 when Obamacare went live.

Being hungry from time to time is a good thing for business. Keeps me on my toes
 
They do at renewal . . .

Sometimes with the renewal notice . . . others not until they look at their bank statement and see the premium increase (that came in the renewal notice 60 days earlier). But they DO look and will ask you to shop their plan.

GA is an entry age state. Once the policy is 3+ years old the savings is nominal unless you are looking at the new kids on the block out buying business.

Of course if they bought from one of the NKOTB 3 years ago that carrier probably left the market and the block has started going south.

Attained age states probably have a different scenario . . .

Birthday rule is an oddity to me. @Newby advised to move 90 days before their birthday. Perhaps there are two sets of rates? One for underwritten, one for birthday rule? And maybe two different commission levels as well?

Again, this is not in my universe so I don't know. Perhaps Newby will respond to this post and enlighten us.
In some states like Kentucky if you do an application within three months of their birthday, it will be guaranteed issue, but it will only pay you $25 and no renewals. So if they're healthy enough to pass underwriting, you wanna do the application before that comes up.
 
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