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Does your FMO agent release agreement include a stipulation “subject to Debit Balance” or does it state “subject to Charge Backs”? There is a difference…
I’m not a lawyer, so seek competent advise. Here are a few thoughts…
IMHO – It is fair to have an FMO agent immediate release agreement with a Charge Back Clause. Not a Debit Clause. The thing that I keep seeing posted is the Debit Balance Clause. Here is my attempt to shed some light on the difference.
Charge Back’s occur when people die or they switch to a different plan or CMS rapid disenrolls a member back to a certain date.
Debit Balance could include a charge back and could include advancements. This type of agreement could affectively block an agent FMO transfer for up to 12 months. Longer then most carriers require. For example, Debit Balance is listed on my UHC statement because they have advanced the annualized commission and each month they debit as earned my account.
If it were a Charge Back then I would need to make a payment to UHC and we would then be whole and I could move my contract to another FMO. I agree with a Charge Back clause – not a Debit Balance clause. There is a difference…
I’m not a lawyer, so seek competent advise. Here are a few thoughts…
IMHO – It is fair to have an FMO agent immediate release agreement with a Charge Back Clause. Not a Debit Clause. The thing that I keep seeing posted is the Debit Balance Clause. Here is my attempt to shed some light on the difference.
Charge Back’s occur when people die or they switch to a different plan or CMS rapid disenrolls a member back to a certain date.
Debit Balance could include a charge back and could include advancements. This type of agreement could affectively block an agent FMO transfer for up to 12 months. Longer then most carriers require. For example, Debit Balance is listed on my UHC statement because they have advanced the annualized commission and each month they debit as earned my account.
If it were a Charge Back then I would need to make a payment to UHC and we would then be whole and I could move my contract to another FMO. I agree with a Charge Back clause – not a Debit Balance clause. There is a difference…