Double Commission?

[Vanessa Solano]

It does. Here’s s how it most likely would work

You would first get paid for the initial amount immediately, let’s say $100. Then, depending on the company you get paid the true up ($382 remaining amount) in a few weeks after.

Then let’s say on Nov 10 the client decides to switch to a new company on 1/1.

So you really only earned about $200. So $282 is charged back.
Then in January you’ll get paid the new renewal amount ($250?) for all of 2020.

You actually lose money in this situation. The $32 difference plus the monthly renewals you would have earned monthly in Jan.

First off, thank you for the thoughtful response. You are amazing.

Second, why does $282 specifically get taken back? Is that a flat figure or is there a formula for it? And how do they even know if it's 2 separate carriers?

And I see about the renewals so its definitely best to ensure that the member is getting the best plan possible from the get go.

 

[axeman462]

My original question clearly has no answer. Good night all!

if you switch the person during AEP, depending on the company you originally wrote with, you may get a partial charge back on the original policy. Then get the standard AEP commission (50% of FYC). Some companies however, will not charge back if the client has been on the policy for more than 3 months.

The charge back portion will be equivilant to the unearned portion of the commission.

 

[PanhandleBob]

If I enroll someone who is new to Medicare to a MAPD plan effective 8/1 and in a few months they call me and want to switch to a different plan with another carrier, would I get commission for both enrollments or just the original one?

So if I enroll a client in August I get full commission for let's say 1st year. In November they decide during AEP to change plans for effective 1/1 I would keep the original 1st year plus get a lump sum in January. The first year payment applies to that plan year even if they enroll in December.

 

[Chazm]

First off, thank you for the thoughtful response. You are amazing.

Second, why does $282 specifically get taken back? Is that a flat figure or is there a formula for it? And how do they even know if it's 2 separate carriers?

And I see about the renewals so its definitely best to ensure that the member is getting the best plan possible from the get go.

I was estimating on $282.

Let's say you get paid $482 for a new to medicare t65. Just divide that by 12 months to figure out how much you actually get paid on it "as earned" per month.
You make roughly $40 per month the client stays on the plan.

So in reality, that client stayed on the plan Aug, sept, oct, nov and dec. So you only earned 5 months (5/12ths) of that $482.

 

[vic120]

Just to clarify, its not a D/SNP and most likely it would happen during AEP for a 1/1 effective date.

If new to medicare and even if effective is 12/01 and you do plan switch 01/01 AEP

You are supposed to get paid on both, Because new to medicare and the change is an AEP change

However, I did have this exact situation, However, I had to look up the exact rule and show it to Ins company and fight for the commission, I did get paid but not without a fight

 

[Tom S]

I pretty sure that would be considered a rapid disenrollment if it happened within the first three months....with an IEP they only have one chance for MAPD

 

[vic120]

I pretty sure that would be considered a rapid disenrollment if it happened within the first three months....with an IEP they only have one chance for MAPD

It's not because a person was new to medicare and makes AEP change is not rapid disenrollment

I did just that and did get chargeback but at the time I was able to get the medicare documentation showing it is to be paid in full, I fought it and got paid

 

[myinsurebiz]

My original question clearly has no answer. Good night all!

You received several answers - all of them correct in parts.

 

[isaias]

If new to MA, the company has the option of paying full year commission (regardless of the effective date) or prorated.
In my area, only one plan pays full year commission. Everything else is prorated.
AEP changes are at the renewal rate and don't count as a rapid dis-enrollment, even if it less than 3 months.

 

[BeeSelective]

This should explain why AHIP is a problem, this is open book, you can research and these are the answers you get.