Can we agree that for the most part, Medsupp commissions are usually higher than MAPD?

[selfgen]

First of all, let’s throw out T65 or other first timers to MAPD. That’s a once in a lifetime occurrence. Even with the double commission in such cases, for years 2-6, the Medigap commission will be higher.
Some companies pay 27% commission for Plan N.
Personally I prefer MAPD commissions, just because it’s simple to estimate earnings and there’s no drop in commission after year 6.

I’m just tired of the fear mongerers on YouTube saying that all these greedy agents are pushing MAPD because of the higher commission.
Gimme a break

 

[MedicareWAA]

First of all, let’s throw out T65 or other first timers to MAPD. That’s a once in a lifetime occurrence. Even with the double commission in such cases, for years 2-6, the Medigap commission will be higher.
Some companies pay 27% commission for Plan N.
Personally I prefer MAPD commissions, just because it’s simple to estimate earnings and there’s no drop in commission after year 6.

I’m just tired of the fear mongerers on YouTube saying that all these greedy agents are pushing MAPD because of the higher commission.
Gimme a break

I have no idea why you’d throw out the T65. That’s the single most relevant market segment. Also very easy to target.

MA has a higher lifetime value so long as you have good retention. Many sup plans pay far less than 27% and most of them stop or almost stop paying after six years. Pt D doesn’t pay much, which means it’s not helping the lifetime value.

If you can get good at underwriting and the needed targeted marketing, yeah, the supplement bonuses can be very nice. It’s a lot harder than it seems.

No, it shouldn’t be this way, but most Medicare enrollees choose MA today, the benefits are quite good, and the comp is very attractive and unlimited - no six year cliff. Plus the overrides are larger and there’s a bunch of soft money.

Walter

 

[Special Agent]

First of all, let’s throw out T65 or other first timers to MAPD. That’s a once in a lifetime occurrence. Even with the double commission in such cases, for years 2-6, the Medigap commission will be higher.
Some companies pay 27% commission for Plan N.
Personally I prefer MAPD commissions, just because it’s simple to estimate earnings and there’s no drop in commission after year 6.

I’m just tired of the fear mongerers on YouTube saying that all these greedy agents are pushing MAPD because of the higher commission.
Gimme a break

I don't think more commission is the main motivator i believe it's other self serving interest like less marketing restrictions and no continuing education required.Also selling mapd suitably is much more complicated then just slinging a plan G here and a plan N there.There are some smart med supp only agents here but it seems like the ones that rag MA the most don't really know shiet about them.I sell the right plan for the right reason and everything else takes care of itself.

 

[selfgen]

That’s what I do. Some people don’t want a Medigap. Some don’t want MAPD. My book of business is probably close to 50-50.

I just want retention. I want my clients to stay with me regardless of what plan they are on. I sell myself. I focus on that.

 

[axeman462]

First of all, let’s throw out T65 or other first timers to MAPD. That’s a once in a lifetime occurrence. Even with the double commission in such cases, for years 2-6, the Medigap commission will be higher.
Some companies pay 27% commission for Plan N.
Personally I prefer MAPD commissions, just because it’s simple to estimate earnings and there’s no drop in commission after year 6.

I’m just tired of the fear mongerers on YouTube saying that all these greedy agents are pushing MAPD because of the higher commission.
Gimme a break

I've walked people through the math of MAPD vs medsupp commissions a few times on this forum to make the same point.
Most are still in denial. Or maybe bad at math

 

[DonP]

I have no idea why you’d throw out the T65. That’s the single most relevant market segment. Also very easy to target.

MA has a higher lifetime value so long as you have good retention. Many sup plans pay far less than 27% and most of them stop or almost stop paying after six years. Pt D doesn’t pay much, which means it’s not helping the lifetime value.

If you can get good at underwriting and the needed targeted marketing, yeah, the supplement bonuses can be very nice. It’s a lot harder than it seems.

No, it shouldn’t be this way, but most Medicare enrollees choose MA today, the benefits are quite good, and the comp is very attractive and unlimited - no six year cliff. Plus the overrides are larger and there’s a bunch of soft money.

Walter

The avg mapd stays on the books only 3 yrs .Med sup you pretty much write it and its auto pilot for 6 yrs .Sure you might have to move the healthy ones that get big rate increases . 6 yr persistency is very high . With mapd you have to be moving your clients possibly 2-3 times in that 6 yrs . Yes in years past you could leave most of the same plan for 3-4 yrs . Thats over with starting this aep . Plans between carriers will be vastly different in 2025 based on rx’s and copays . Also there’s going to be tons of non renewing plans in different counties . I’ve counted at least 40 plans of non renewing plans with just one carrier . Many of the med sup agents on here don’t sell part d so they just sit back and collect fat renewals doing little . Mapd has many moving parts . I’d love to only sell sups . But thats really tough when there’s 32 million mapds and only 14 million sups out there . Your ignoring 66% of the mkt by not selling mapd

 

[MedicareWAA]

The avg mapd stays on the books only 3 yrs

It varies wildly by sales channel and marketing cost. Focus on the lifetime value of the client, not the specific policy. MANY agents selling face to face see an 8-10+ year client retention rate. The way MA comp is structured, including the reliable annual increases, make MA clients more valuable.

Call centers? Good luck keeping the client longer than 18 months. And be prepared for an embarrassing rapid churn rate. And almost all switchers.

I focus on the product most appropriate or preferred by the client but MA clients have higher LTVs especially when focusing on new to Medicare.

Walter

 

[DonP]

It varies wildly by sales channel and marketing cost. Focus on the lifetime value of the client, not the specific policy. MANY agents selling face to face see an 8-10+ year client retention rate. The way MA comp is structured, including the reliable annual increases, make MA clients more valuable.

Call centers? Good luck keeping the client longer than 18 months. And be prepared for an embarrassing rapid churn rate. And almost all switchers.

I focus on the product most appropriate or preferred by the client but MA clients have higher LTVs especially when focusing on new to Medicare.

Walter

Correct the key is T-65 .If you get them early long term persistency much greater . I’d say the avg call center persistency is no more than 8 -10 months overall as 90% of their business is duals lis .

 

[selfgen]

My up line told me that call centers only pay first year commissions—-no renewals. I was not aware of that. Has anyone else heard this?
90 % of my book are fairly loyal to me and would know to contact me if they were considering a change. So I will be sending out a letter to that other 10% of my book that don’t think to call me, imploring them to resist talking with telemarketers and to contact me instead.

 

[selfgen]

I have no idea why you’d throw out the T65. That’s the single most relevant market segment. Also very easy to target.

When I said throw out the T65, I only meant that with regards to comparing commissions. The double commission only happens once per a member’s lifetime, so it shouldn’t be used when comparing Medigap vs MAPD commissions.