Comp Change for MA's

[Experienced Agent]

FYI - it appears that MA comp for the next AEP will not be paid until Jan 2015. This is in new CMS compensation rules. They state that compensation for 2015 effective dates can't be paid until the plans become effective. Tighten up for the holidays!

I'm told the only way around this is for companies to create commission loan programs vs advanced or annualized commissions.

 

[somarco]

I'm told the only way around this is for companies to create commission loan programs vs advanced or annualized commissions.

Or go as earned .........................................................

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[midwestbroker]

Yep...AEP business will not be paid until after January 1st according to CMS.

From the Medicare Program Contract Year 2015 Policy and Technical Changes, page 71:

changing the timing of payments to require that payments may not be made until January 1 of the
enrollment year and must be paid in full by December 31 of the enrollment year. We stated that
this proposal was appropriate given that the beneficiary's final application during the AEP
becomes the effective enrollment. This would reduce the number of recoupments required when
an enrollee signed more than one application during the AEP.

I have yet to hear any carrier reply to this news...

 

[sman]

I have no problem with it. Just means less taxes for 2014.

 

[Experienced Agent]

That was immediate first thought.

 

[JimmyUt]

That was immediate first thought.

I look at it as less agents doing the work because many can't afford it without advances. I have one carrier that waits til Jan anyway, and it was nice getting an $11000 deposit after Jan 1st.

 

[WCMason]

FYI - it appears that MA comp for the next AEP will not be paid until Jan 2015. This is in new CMS compensation rules. They state that compensation for 2015 effective dates can't be paid until the plans become effective. Tighten up for the holidays! I'm told the only way around this is for companies to create commission loan programs vs advanced or annualized commissions.

Not great for new agents, some not able to make it with the delay. So, a small positive for veteran agents to the extent it keeps competition down.

 

[Chazm]

I look at it as less agents doing the work because many can't afford it without advances. I have one carrier that waits til Jan anyway, and it was nice getting an $11000 deposit after Jan 1st.

Careplus takes until February!

 

[sman]

Careplus takes until February!

Same for Blue Cross. Although they aren't a big player here in Georgia.

 

[vic120]

I have no problem with it. Just means less taxes for 2014.

All the payment I've got Jan from aep always went on previous years income anyway

as far as w form and year to date tallies