CMS Commission Change

[BrianK]

Hi everyone. My first post. Hope everyone sees it okay. I got a copy of an email today about Medicare Advantage Commissions. The first part just jabbered about MIPAA, but the second half said that CMS is now levelizing commissions. Here are the rates they say.

$50 PDP
$400 MA
$450 MA in Connecticut, Pennsylvania, DC
$500 MA in California or New Jersey.

All of these rates are first year commissions by the way.

I know we all thought this was behind us and I thought it was just a copy of an old CMS update, but this email is dated 12-19-2008 and was sent by a Medicare Advantage Company.

Anybody else see or hear anything about this?

 

[Todd King]

which MA company did you receive that from?​

 

[HealthResourceAdvisor]

He may be right. It looks like now that CMS has had time to review commissions, they have identified "outliers". I know CIP at 600/300 was definitely flagged as an outlier. I think all the 225/450s may have been flagged as well.

 

[Dave020]

Blue Shield CA sent the same thing out yesterday...$500 FYC $250 Renewals

 

[AzBroker]

Hello to everyone also, my first post too!

We agents need to unite & start calling Congress members from your state that you live in, these commissions are bull%^&**!

I thought Obama was going to change the wealth structure from the bottom up!

My problem with the Commissions are:

1) For 2009, the Insurance Companies are making the same amount or more from CMS.

2) Just talked to a broker from Integrated Benefits and he said that they are getting pretty close to the amount they recieved last year, which means many FMO's are doing very good! For example: my FMO is getting $125 per app in Az for 2008 & 2009 and my renewel for Aetna in 2009 is $125! He does almost nothing and makes the same as me.

That's why there is no resistance to the new CMS commission structure, the Insurance Companies & the FMO's are doing fantastic & we are getting KILLED!

 

[jdeasy]

Does this mean the ones paying less than that will have to increase the commission?

 

[patch36]

Are you guys trying to make a living off of just MA products? The writing was on the wall almost 2 years ago when they shut down the continuous enrollment season. Trying to live off of low hanging fruit is difficult when the fruit is only ripe a couple months out of the year.

These new commissions pay us for another 5 years. I am good with that, in theory. I do not trust the plans will resemble what they do today in just another year or two..., but if I take care of my clients I will have them as clients for the next 5 years, whatever the plans evolve to. Plus I will be able to glean referrals and cross selling opportunities. Cheer up, diversify, and quit working this like it is a seasonal part time job.

 

[AzBroker]

Patch,

I'm glad you don't mind working for 50% less than what I made last year, but some of us do, no matter seasonal or not!

Are you a FMO?

We will see how much you like it next year when they pay you $50 an app!

 

[AgentOrange]

i guess CMS forced some carrier to meet new criteria, got this from Aetna today ...

Updated 2009 Commission Rates for Aetna Individual Medicare Plans ​

Based on recently issued guidance by the Centers for Medicare & Medicaid Services (CMS), we have had to revise our 2009 commission rates for Aetna Individual Medicare Advantage Plans. The commission rates below apply to any enrollment already made during this open enrollment period, with an effective date of January 1, 2009, as well as any future enrollments in 2009.

 

[The Hunter]

Agent orange would you mind sharing what the commission rates below are?