I'm starting my own agency and plan on brining on other 1099 independent contractors. I know CMS sets comp for MA plans but how do I compensate those independent contractors working for my agency? How do I make a profit as I scale my business?
Are they going to be loa agents? If so you can pay them what you want . Are they getting paid directly from the carrier ? If so then they’ll get full street level commissions . If thats the case you have to work out an override agreement with the fmo directly . Thos are called admin fees . Depending on your agencys vol those can be anywhere from $50 to $175 an app . Then you got marketing money that’s negotiable . Before attempting to open an agency you should have known all this info
You may already know this but in case others who read this thread don't: Make sure the business form you are taking for your agency is appropriate and protects the shirt off your back and familys' backs in case you get sued or, for some reason, go bankrupt. Yes professional liability insurance for lawsuits helps but having more protection than that makes sense when your business incorporation form means just your business assets are at risk (so their assets are not commingled with yours) and you don't lose all of yours too. Sole proprietor is NOT it (assets are commingled). Your local Small Business Administration can help you with that and answer questions.
