CMS Changes Are Going to Lead to Commission Cuts for MAPD

[Nikita]

Ultimately, if you write a 12/1/14 T65, UHC should "advance" you all of 2014 - which is $33.33.

Then, in January 2015, then should pay you monthly 33.33 thru November '15 - at which point it should drop to $16.67 for December 2015 and beyond.

This is what should happen if they are simply changing how they pay, but not how much they pay. What I'm concerned about them doing is "Advancing" $33.33 in Dec 2014, and then paying only $16.67 starting in January 2015. That would be a big loss on the T65 new to medicare business.

Yes my feelings exactly. My understanding is that is what they intend to do, i.e. to drastically cut the commissions on certain MAPD plans and I personally believe they have singled out the plans that are less profitable for them. So the agents take the financial hits so the fat-cat corporates can keep their millions....

 

[jdeasy]

If theses are CMS changes as the title of the thread suggested then why aren't all the companies paying it this way?

 

[unic.consulting]

The CMS change is that all plan years will be from Jan to December instead of enrollment to 12 months later. They're standardizing the plan year. How each insurance company decides to deal with this is up to them.

 

[Midlevel]

I just thank God I don't have to worry about all these $33 or $16.67 or whatever commission you are going to get going forward. $0 is so much better!

 

[Chazm]

Talked to my upline and this is normal. It's like a. Few others are saying. If someone signs up 12/1/14 effective you get $33 per month till the following dec when it's then the lower $16. UHC only cleans it's books twice a year and you get huge chargebacks. Now as earned you won't get that. This only would hurt new agents if they don't have much startup money

 

[sshafran]

Talked to my upline and this is normal. It's like a. Few others are saying. If someone signs up 12/1/14 effective you get $33 per month till the following dec when it's then the lower $16. UHC only cleans it's books twice a year and you get huge chargebacks. Now as earned you won't get that. This only would hurt new agents if they don't have much startup money

Sounds good to me......

 

[Nikita]

Talked to my upline and this is normal. It's like a. Few others are saying. If someone signs up 12/1/14 effective you get $33 per month till the following dec when it's then the lower $16. UHC only cleans it's books twice a year and you get huge chargebacks. Now as earned you won't get that. This only would hurt new agents if they don't have much startup money

Well I talked to my upline, who happens to be a Regional Manager for UHC and she said we are definitely getting commission cuts. How exactly that is all going to play out I guess we will have to wait and see but the email made it clear that "certain" plans were not going to be receiving the tru-up any longer....

Another issue that no one has mentioned is that the CIP MAPD PPO here in Iowa is going to be non-commissionable starting 1/1/14, which is usually a pre-cursor to plan elimination, at least that's what happened to the other CIP chronic plans here in Iowa (the Chrome and Copper.) This is REALLY bad news for many of us that rely on this plan for all the people that insist on access to U of I providers.

 

[G.Gordon]

In the Kansas City market, the regional and local PPO are non-com with apps dated Jan 19th or later. Chronic and Dual plans are still paying full com.


They suck in this market anyway, only their formulary gave then an angle into this market for this AEP. Less than double digit members out of our four digit office.

 

[Agentinjax]

Wow! That sux for real. Here in Florida, at least with the MAPD companies I rep, we get the typical $214 (give or take a few dollars) for people already in an MAPD and about $425 for the ones who never enrolled in a MAPD plan before. To get less is going to hurt because I am sure most of us don't get a bunch of chargebacks! Most of mine are because of death! The math is simple...we know if we want to make $10K per month we have to enroll about 50 people. Now, with this new model...never mind...my head hurts.

BTW, charge backs suck anyway. They don't charge back the doctors or anyone else up the food chain but us agents. So annoying.

 

[Ncinsured]

The way I perceived this , is that the new system will payout on the back end. For instance, since UHC is implementing this in 14 we should get all our renewals for January in full. All $ 201. B/c if it has to be paid per month per year it has to be paid at once . Like some one that renews in June, we will have to get the 201 in June b/c it must be paid in the new calendar year which is jan-dec. so if you have a good renewal base like 40 or so folks you will get 8k a month in renewal. That might take the sting out of the pro rating.. Well that's how I see it.