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Should CMS end the FMO contracting level for agents selling MA and PDP’s?
How would I then get my over ride?
How would I then get my over ride?
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No way that will happen, it would destroy the entire structure of the industry“overrides “ to Fmo’s are given under “ administrative fees” . Maximum comp for a true up is $601 . Any moneys above that are administrative fees . Those will not be allowed in 2025. Marketing money is administrative fees . Nothing above $642 will be allowed in 2025 . Do carriers chop agent comp and give that difference to Fmo’s ?
The only things that will change is the agent will no longer be allowed to split the FMO's override, get reimbursed for marketing, gas etc.., and will no longer be allowed to get bonuses from their upline if they produce X amount of MAPD policies in X amount of time.
If anything, this will only benefit the FMO levels and up. The independent agent gets the shaft
@Todd King still waiting on that email...
I may have misspoke when I said FMO, what I meant was, in general, any entity that has a contract higher than a street level agent does.Your snapped if you think any good agents going to allow a greedy ass fmo that does very little to make $250 and the agent has to pay all his marketing . Bs . Why would the fmo be allowed to make overrides and not the ga , mga and imo ?
I may have misspoke when I said FMO, what I meant was, in general, any entity that has a contract higher than a street level agent does.
It sounds like CMS is going to crack down on FMOs handing out GA contracts to agents that don't have any type of a downline.
I wouldn't be surprised if certain level contracts (such as GA, MGA, SGA etc..) get eliminated as a result. Some agents will probably be forced down to a street level contract.
National FMOs will use the excuse "we are just complying with new regulations" when they force an independent agent down from a GA or MGA contract down to street level.
At the same time, bonuses are stripped, marketing incentives are gone, but the profits of Neishloss and Flemming, Integrity, Senior Market Sales and the rest grow.
If you haven't read the proposal from CMS, you should. It almost looks like it was written from by national FMOs
I read every word and I’ve listened to several fmo podcasts . It’s saying no commission above the $642 national comp period . . Please show me were it says anything about any fmo making an override . Matter if face on several fmo podcasts there saying if this passes the override model is over . Only agents and agencys with loas can survive
Override model to the selling agent.
FMOs like Todd King, and several others on this forums will still be able to collect an override.
What CMS is trying to stop is all the incentive money flowing to the field agent in an attempt to stop the field agent from steering people to products that ain't right for them.
This incentive money includes HRA fees, marketing money, and overrides shared by the FMOs.
Many street level agents that don't have a downline have higher paying contracts like GA and MGA even though they don't have the requirements met for these contracts
I suppose it's possible I'm wrong. Don't matter much, I ain't going nowhere, and if it thins the herd, so much the better. The market is totally saturated, less agents to compete with would be greatYour incorrect . It specifically beats up fmo overrides . 4 fmo’s I listened to said game over for fmo’s if this passes . Your interpreting this wrong . I for one will cut my Medicare business at least 50% without marketing money . I’ll go back to fe mostly . Lol I’m not paying $70 for a direct mail lead we’re in July you make $150 .
Override model to the selling agent.
FMOs like Todd King, and several others on this forums will still be able to collect an override.
What CMS is trying to stop is all the incentive money flowing to the field agent in an attempt to stop the field agent from steering people to products that ain't right for them.
This incentive money includes HRA fees, marketing money, and overrides shared by the FMOs.
Many street level agents that don't have a downline have higher paying contracts like GA and MGA even though they don't have the requirements met for these contracts