CMS Final Rule for MA/part D overrides

[axeman462]

where are you reading the full article at? Where can we access it?

CMS.gov

 

[DonP]

This isn't gonna stop Joe Namath.

It might not stop him but when you take $400 ( $250 admin override plus $150 to $200 an app marketing override ) out of a calls centers pocket that’s huge . 95% of call centers business is the $305 sales . The agent must earn a min of $150 an app overall to even stay there . That leaves $155 left and marketing, office,computers etc is at least $200-$300 an app. So they’ll lose money the first yr . Take into account 60-70% persistency its a dead business model . Now the carriers keeping that money will hire big call center staff

 

[Fisher]

Totally incorrect. There’s no adminstrative payments above the $711 to the agent . No marketing money either . The ruling clearly states they raised the commission $100 “ for the agents increased costs such as paying for enrollment software “ In so many words cms wants fmo’s and anyone that used to override out of the mapd business . They view them as having the incentive of money as a way they “steer” clients to specific plans . As i always said . The total override on mapd is 80% which is insanity .

Not so sure about that, actually. It's the govy way - It might not be final, but it's final for today.

 

[DonP]

Amazing all the clowns fmo’s on Facebook are looking to interpret this that it doesn’t apply to them .It applys to agents . Bs bs . They sure as hell didn’t increase comp to agents so they could pay for stuff that the fmo used to provide so they could give the fmo a override . People delusional

 

[Rossat]

I think it's pretty clear. The amount of compensation with the new FMV rates are all that can be paid based on enrollment. It does state, however, FMOs/TPMOs can still be paid but not paid on a per enrollment basis.

So overrides as we know it today go away for 2025...

If the FMO takes anything it's taken off the FMV rate. Not sure how many agencies/agents will do this.

Who is really F'd here are the true insurance agencies out their with employees/downlines.

 

[Russ]

So the agent makes more money in 2025. Great.

End of story for agents.

 

[DonP]

I think it's pretty clear. The amount of compensation with the new FMV rates are all that can be paid based on enrollment. It does state, however, FMOs/TPMOs can still be paid but not paid on a per enrollment basis.

So overrides as we know it today go away for 2025...

If the FMO takes anything it's taken off the FMV rate. Not sure how many agencies/agents will do this.

Who is really F'd here are the true insurance agencies out their with employees/downlines.

So the question becomes will carriers try to take that $100 increase in FMV and give it to the fmo to provide services like contracting and enrollment software ?Will they take more than the $100 and the agents pay falls? Will carriers set up fixed cost commissions almost like a w-2 with fmo’s directly? There’s no question whatever happens the 10’s of thousands of Ga,s ,mga’s ,small imo’s that were squeezing juice on the inside are gone .

 

[sbg_ben]

This is very interesting. I am interested in seeing how this affects the existing FMO structure. After reading through it, it doesn't seem clear that the FMO no longer receives overrides. It is very clear that they can no longer pass along the overrides in the form of marketing $ to agents.

 

[Chazm]

Amazing all the clowns fmo’s on Facebook are looking to interpret this that it doesn’t apply to them .It applys to agents . Bs bs . They sure as hell didn’t increase comp to agents so they could pay for stuff that the fmo used to provide so they could give the fmo a override . People delusional

He’s talking about LOA. That he set up his biz correctly (LOA) where he’ll be fine. FMOs who didn’t, will suffer.

 

[DonP]

He’s talking about LOA. That he set up his biz correctly (LOA) where he’ll be fine. FMOs who didn’t, will suffer.

No . Many others Brock included think money will still flow to Fmo’s not as overrides but as some other type of payment . Again everyone’s talking there book . Yes loa’s will work but still massive marketing money and the $250 per app override gone . Example you sell a non t-65 right now that’s $200 for 5-1 effective date . Means $450 of potential money plus hra fee is gone . You got to pay the agent min $150 an app . Sure the loa agency could say we’ll make the money on backend renewals of $29.50 a month . The way choas coming to mapd renewals aren’t safe as far as clients can jump around . This is a major major hit to all organizations that have lived off overrides . No amount if Brock sugar coating can change that