CMS Proposal to End Multilevel FMO Marketing

[gregj]

My clients come almost exclusively from referrals. My "marketing" consists of a few business cards, a snazzy fridge magnet/chip clip (still have a few from the box of 50 I ordered from Vistaprint a couple years ago), and an introductory phone call when someone's referred me.

I have clients in 15 states, in all the coverage options (even had a MSA client for a year - guy drove a Ferrari!! - curse you, Zing Health (jk)).

Annual enrollment's kind of a thing for me, but mostly not really.

I feel like I'm more like Somarco - be my clients' resource for sorting the stuff out, let them make the product call. Someone they can call/text when questions come up. Most of my clients could deal with this stuff themselves. They don't wanr to. They like "having a guy".

"soft" dollars being cut for people who actually try to sell this stuff?

Sounds like the game's coming back to me

 

[axeman462]

My clients come almost exclusively from referrals. My "marketing" consists of a few business cards, a snazzy fridge magnet/chip clip (still have a few from the box of 50 I ordered from Vistaprint a couple years ago), and an introductory phone call when someone's referred me.

I have clients in 15 states, in all the coverage options (even had a MSA client for a year - guy drove a Ferrari!! - curse you, Zing Health (jk)).

Annual enrollment's kind of a thing for me, but mostly not really.

I feel like I'm more like Somarco - be my clients' resource for sorting the stuff out, let them make the product call. Someone they can call/text when questions come up. Most of my clients could deal with this stuff themselves. They don't wanr to. They like "having a guy".

"soft" dollars being cut for people who actually try to sell this stuff?

Sounds like the game's coming back to me

all joking aside, those fridge magnets make all the difference.
I've put them on client's fridges, go back to their house 5 years later, and its still on their fridge. great branding.

 

[wildflowerwealth]

The numbers on this thread about how much FMOs are making is completely untrue, FMOs are not making more than you on the business you write. And if you're not receiving support from your FMO, you're partnered with the wrong FMO.

My upline claims to be making about $30k/month on overrides from term life and adb sales alone. It's part of the sales pitch to lure young agents that don't do their research up front.

 

[wildflowerwealth]

I don't know if it will do any good, but if anyone wants to submit a complaint to CMS, see information below. CMS is basically saying that the FMOs will get less money. For those of us getting marketing dollars, reimbursed marketing expenses, and other support from agencies, this could hurt us financially because it increases our expenses. And don't forget about the software we use through our FMOs like Sunfire & MedicareCenter. I don't think the average agent can afford this software or would even have access to it to be able to purchase it.

Anyway, the info is below. I copied this from an email sent out by Ed Crowe:

How to submit a comment
A number of people have asked me if there is anything we can do to change the final version of the rule. The best thing we can do is to send in comments to CMS regarding the proposal. You can send in a comment by going to regulations.gov and making a comment. When you go to the site enter "CMS-4205-P" in the search bar. It will bring the entire 486 page document up. There is also a "Comment" button you can submit comments through. It will ask you to choose a category which can be "Government-Federal" Make sure to reference the proposal number in the comments which is CMS-4205-P
Pinnacle www.pfsinsurance.com has added a lot of information to their homepage worth reviewing. It includes links to contact U.S. Senators and local congressional district representatives.

Suggestions for submitting a comment

Remember: All comments are public record so be professional with all comments submitted.
It is my feeling that CMS does not know the difference between an independent agent/agency and a tele-sales organization or a direct carrier rep that only sells the company they work with. They feel we all operate in the same manner, which is to sell the client the company that pays us the highest amount (due to overrides or expense reimbursements) or the company with the highest paying HRA fee. They also do not understand that most independent agents talk to clients about Medicare advantage and supplements plans and find the best type of plan that works for them.

• Explain to them how you are different as an independent agent
  • You work with the client to find the best type of plan Advantage vs. Medicare supplement. You check medications for PDP and Advantage plans and check doctors for Advantage.
  • Also, unlike a tele-sales agent or company sales rep, you call them every year to make sure they are in the best plan possible for their situation.
  • If you feel the services and value you provide to clients would be inhibited by losing the support of your upline (Contracting, support with questions, Connecture, Sunfire, compliance updates) it would be important to mention that in the proposal

That's all fine and good if the marketing is actually used to help build the agency and the agents producing. It's a completely different story when an FMO "leader" forces the agents to spend a certain amount of money on their own CRM, to purchase their own recycled leads from the leader's partner company (of which they are no doubt making money from, reselling said leads) and really doesn't invest much in marketing at all and then threatens to "lower commission amount" if said things are not done. Don't call it "investing in your own business" when someone is a 1099 and is truly free to get leads and market how they see fit. Otherwise it's just taking a cut for signing them up way back when. Not to mention the fact that I've seen some agents told that ACA (I realize you are all talking about medicare but still) pays nothing and that your upline should be taking care of submitting policies to the marketplace and takes credit for the agent's work. I have no issue if an FMO is truly investing time and money into their agents, but with many, it's just how they rope people in and live off their hard work.

 

[Yagents]

Whatcha gonna do.........Whatcha gonna do when they come for you........

https://www.modernhealthcare.com/politics-policy/medicare-advantage-marketing-wyden-finance-committee-letter?

An ongoing Senate investigation into Medicare Advantage marketing is now targeting online insurance brokerages.

Finance Committee Chair Ron Wyden (D-Ore.) sent letters to eHealth, GoHealth, SelectQuote, Agent Pipeline and TRANZACT on Tuesday requesting information on how they identify potential customers, advertise and direct older adults to choose specific Medicare Advantage plans.

Wyden's committee has been scrutinizing Medicare Advantage marketing for several years and considered legislation to rein in tactics critical lawmakers see as misleading and manipulative. Wyden also has advocated for the Centers for Medicare and Medicaid Services to tighten its oversight of Medicare marketing and compensation for third-party sales organizations.
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In his letter, Wyden accuses marketers of employing high-pressure, unfair sales tactics to drive enrollment into plans that promise high commissions rather than into coverage best suited for customers.
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“The largely unregulated sale of seniors’ information to lead generators and third-party marketing organizations has led to a race to the bottom as unscrupulous actors put their own financial interests ahead of seniors’ health needs,” Wyden wrote the companies' CEOs. "Seniors are being bombarded by well-intentioned brokers and bad actors who use various ploys to sell Medicare plans."
Wyden instructs the brokerages to provide information on where they buy and sell prospective customers' personal information, disclose previous customers’ disenrollment rates, and submit examples of recent marketing materials.

Wyden's office declined to comment. The brokers did not immediately respond to interview requests.

 

[Yagents]

Wyden needs to just go away..........

[EXTERNAL LINK] - Senator Probes Medicare Plan Distributors on Marketing Tactics | ThinkAdvisor

https://www.finance.senate.gov/imo/...medicare_marketers_business_tactics_12324.pdf