CMS Commission Change

[patch36]

Great points Rick, sman, Bob & jd. I was starting to feel bad about feeling good about what I was selling and being paid.

The MA's are such a simple product and the pay is good compared to almost every other type of health insurance. That is what attracted so many, so quickly, to the business. It is discouraging to sit in many of the certification meetings and see some of the types of agents I am associating with.

Weed em out. Levelized commissions and a different enrollment period without Lock In would certainly go a long way towards cleansing the sales force and improving the service we can offer to our clients. I wonder how many clients ever hear from their agents again, except to flip them the next AEP/OEP ?
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The relationships, referrals and cross selling opportunities I have made the last 2 months will help sustain me throughout the next 12 months with the other products I offer. It is not just about the relatively small commission I made during AEP, it is about the relationships I made. I wouldn't bother doing MA's if not for that.

 

[AzBroker]

Wow Patch, you sell other products, I'm impressed, what a new concept!

"Flipping customers", for the last 5 years in Az the plans have gotten better each year as far as benefits & premiums go, so according to you they should have stayed on their old plan, what a dissevice to the client!

You work for CMS?

FMO's & Ins Companies making the same, agents getting screwed! One example: Aetna payed &625 in 08, paying $125 in 09 & my FMO gets $125 in 09 for sitting on his a$%!
I still have to drive 3 hours each way to see my clients 5 times a week, Patch would say that's fair, hit me again CMS, LOL. I wonder what that *** REP from California would say if next week he was informed that his $170,000 salary for 09 was being cut by 50%, I'm sure that he would say boy that sounds fair to me & oh by the way Congress raise for 09 just last week was automatically pushed through. Go CMS & Congress, right Patch.

 

[patch36]

I'm not the enemy and I was not picking on you. I am not from CMS, nor am I an FMO. I am doing fine doing what I do and I am going to make the same or more this AEP as I have in the last 2.

I stated what my commissions are and my situation. Your's may be different, but that is no reason to personally deride me or accuse me of being from the government. Where I am from that is worse than calling me a son of a bitch.

It seems obvious that the MA game has changed for you and it has evidently affected you adversely. Sorry bout that, but you could always 'sell other products'.

 

[AzBroker]

Patch,

Nonthing personal against you, I just really disagree with your so what that they cut commissions opinion, to alot of us it is a huge pay cut from last year! I'm only talking about what I make in the AEP, of course most of us will be selling other products after 1-1-09, so that's where the pay cut for me is. Just a rough example: let's say I wrote 200 customers during AEP last year @ Aetna $625 & some @ Coventry $400 per app and this year those same 200 customers @ Aetna $125 & Coventry @ $250(by the way, my IB broker said Coventry may drop to $200 per app for 09), big difference for driving the state of Az for Nov, Dec 6 hours a day 5 days a week.

Now, if CMS had given us a year in advance warning of commission drops & cut fees to Insurance Companies & FMO's I could live with that. These customers need our help, in Az in 1 county there are 49 different health plans & 52 PDP plans.

"Churning" IMHO is an excuse by CMS & the Insurance Companies to cut agent commissions! There are bad apples in every business segment, if agents are flipping their customers to worst plans for better commissions their customers will eventually run from their agent or inform CMS and you will not be selling Medicare products. Why does Medicare advertise on the radio, tv and on their website telling customers to check their current plans with the new plans because premiums may have gone up & benefits may have gone down?

Sorry for the rant, I could be completly off base.

Merry Christmas to all!

 

[patch36]

You are not completely off base. I worked my ass off in AEP. My average commission is lower, but I sold more. The commission Coventry is paying for new apps is higher this year, and MA to MA is lower, but my average commission is not that much lower to cause me great concern. I do not know how much I made for sure. At least half of what I sold was new to MA, so it all works out.

My drove a lot this AEP. I averaged 1000 miles a week, ran way over 20 appts a week, and worked my ass off. I am just glad it is over. I resent the uncertainty and manipulation by CMS and the insurance companies, but there is nothing I can do about it, so I tend to not focus on it. MA's, Med Sups, and PDP's I will gross over 20k for 2 months work. I also sold several annuities and other products. If all I sold were MA's and worked this hard, I would quit.

 

[retread]

Just a simple move of doing away with lock-in would solve most of these problems.

Without lock-in, clients would not be stuck in bad plans even if they were sold a bill of goods. The market would weed out the pretenders and the cream would rise to top and the pretenders would fall away.

Bob is correct in that the senior market is great about referrals. It works both ways. They tell each other about good plans and problem plans.

Even if lock-in is to continue, it should be changed. It is ridiculous to have AEP during this time. Not only because of the holidays, but, also because of the weather. I had to postpone two appointments yesterday because of ice covered roads. I have to now try and find a way to get to those people before Dec. 31 and just hope that, if I can find time, the weather doesn't deaal us another setback.

Why not have AEP, if there has to be one, during June, July and August?

I agree with Rick that every problem in this market has been the result of some kind of silly ass CMS rule or regulation.

Agree, except that the AEP should be Jan to Mar in place of the OEP. This would eliminate the short time during the major holiday season. Valentine's and St. Paddy's day are not as big, and you would have 3 months instead of 45 days. Why have an AEP and an OEP both?

 

[dabizom10]

I have been getting raped!!!! bankers life aetna only pays 90 now and 70 later!!!!!

 

[retread]

I have been getting raped!!!! bankers life aetna only pays 90 now and 70 later!!!!!

That commission structure sounds like you are on a Solicitor Only level. The rates being discussed in the threads are GA level.

 

[umcorp.pjackson]

The change in commission may have had good intentions, but for the most part, I feel the companies are doing a disservice both to the consumer and the agents.
Commissions are payment for services rendered, so whatever the agreed upon rate it should match the service rendered. I think that so many of the reasons for moving a beneficiary are due to the changes that the plans themselves make in the benefits offered.When I am servicing my customers, and the plan that they had last year has gone up in price and down in benefits, is it "churning" when I put them into a plan that costs less, and offers more?
And did I do any less work that I did before to find and enroll them into the plan they needed? So it seems to me that I am getting paid less for doing right by my customers.
As for 5 year renewals, lets be serious!
Considering the age of MA enrollees, many of them will die prior to the 5 year renewal period as well as the possibility of being forced to change to another plan or move out of the service area, all of which circumstances will affect me getting commissions.
By the way, does anyone know if I change my clients from, one MA plan to another one will the renewal period begin over for the new plan or will the clock keep ticking? Also for the rare enrollee that survives for 6 or more years,will no more commissions be paid for them should they need to make a change?
Some agents may have been a small part of the problem, but I think they have gone way overboard and thrown the baby out with the bathwater here. CMS should be more concerned with what's best for the beneficiaries and let the insurance companies and agents work out what's best for them.
I really enjoy servicing the senior market. I will continue to do so with integrity but I would appreciate it if the powers that be just put the cards on the table and stop playing games with us.

 

[AzBroker]

Jackson,

Great post, my thoughts exactly!

Patch,

There might be something we all can TRY to do.
Last year AEP-Roughly $80,000
This year AEP-Roughly $38,000

The Broker that I talked to said the Insurance Companies are swimming in money this year, his words, not mine and I can see why!