Commission Question on MAPD

[Russ]

I might could find out by calling the producers help desk if I was fortunate enough to get a knowledgeable person on the other end, but I thought I would ask this on here.....

Last week I wrote a gentleman a MAPD plan with Secure Horizons. He had purchased one through Humana effective January 1st, 2009, but replaced it because the agent was less than honest about hospitals in the network.

My question is....will I just get the renewal commissions on the policy I wrote? Or will I get first year commissions? And what happens to the commissions paid to the Humana agent? Are they charged back? As best I can remember Mr. Client had previously had a MA plan back in 2007. I wrote him a med-supp in 2008 to replace it, but he dropped it during the summer.

 

[DrAffordable]

Yes, you will get the renewal commission. And the Humana agent will get a chargeback.

The only full commission beneficiaries are Age Ins (new to Medicare) or existing Medicare recipients who do not have a MA or MAPA plan; they can be coming from Med Sup or Original Medicare + Part D and will be full commission.

However, with Secure Horizons/UHC and I would imagine most other carriers are the same; CMS new guidelines state you will be paid the "Renewal Commission" rate upfront and then after they verify that the benificiary has never had an MA/MAPD plan and they reconicle and will apply the "Initial Commission" rate with what they call "True Ups". If I am not mistaken they have 90 days to reconcile, at that time you get the difference between the renewal & the initial commission.

Hope this helps!

 

[Russ]

Yes, you will get the renewal commission. And the Humana agent will get a chargeback.

The only full commission beneficiaries are Age Ins (new to Medicare) or existing Medicare recipients who do not have a MA or MAPA plan; they can be coming from Med Sup or Original Medicare + Part D and will be full commission.

However, with Secure Horizons/UHC and I would imagine most other carriers are the same; CMS new guidelines state you will be paid the "Renewal Commission" rate upfront and then after they verify that the benificiary has never had an MA/MAPD plan and they reconicle and will apply the "Initial Commission" rate with what they call "True Ups". If I am not mistaken they have 90 days to reconcile, at that time you get the difference between the renewal & the initial commission.

Hope this helps!

That's what I figured.....

 

[midwestbroker]

Not that you care about the Humana rep, but if he was a captive agent, he will not get paid anything.

Humana pays their captive agents 3 months out on MAPDs.

 

[retread]

Not that you care about the Humana rep, but if he was a captive agent, he will not get paid anything.

Humana pays their captive agents 3 months out on MAPDs.

In which case this Humana agent (if captive) would not get a charge-back! So there... sleep better tonite... no one got hurt in the making of this sale!