Florida blue cutting commissions

[InsuranceGuy29]

I don't disgree that being aware is a good thing. There are definitely risks to our business being linked to a government program. There are agents on this site that can testify about how the government destroyed their business at least once. - @somarco comes to mind.

But there is also nothing more permanent than a government program.

However, the risk of the President's pen does not only apply to our industry. I watched friend's businesses get destroyed because of the scamdemic shutdown 4 years ago.

That all being said, having your business diversified is not a bad idea either. Personally my Medicare book is 45% medsupp and 55% MAPD. But I also have a book of HIP, dental/vision, Life insurance, and annuities. I also recently started recently expanding into ACA.

On top of this I also invest aggressively outside of the industry. - something all independent brokers should be doing since we do not have an employer that provides us a retirement.

Perfectly stated. Medicare Advantage is absolutely not going anywhere, ever. It would be political suicide. The plans are extremely popular, the ratings are very good (contrary to the narrative by some), and people like them. We are just in a down market, due to an absolutely atrocious communist regime that will be gone in a month. Things are gonna get insanely better, and fast. People just need to vote better (which they did, thankfully), and all brokers/agents need to get involved and stay involved in politics.

 

[EckoRomeo]

I don't disgree that being aware is a good thing. There are definitely risks to our business being linked to a government program. There are agents on this site that can testify about how the government destroyed their business at least once. - @somarco comes to mind.

But there is also nothing more permanent than a government program.

However, the risk of the President's pen does not only apply to our industry. I watched friend's businesses get destroyed because of the scamdemic shutdown 4 years ago.

That all being said, having your business diversified is not a bad idea either. Personally my Medicare book is 45% medsupp and 55% MAPD. But I also have a book of HIP, dental/vision, Life insurance, and annuities. I also recently started recently expanding into ACA.

On top of this I also invest aggressively outside of the industry. - something all independent brokers should be doing since we do not have an employer that provides us a retirement.

A government program being permanant is not the same as thing as a government program being a profitable business endevour. So, while our industry isn't the only industry with political risk, ours is much more exposed to that risk because the government literally runs our industry. It writes the checks that pay our commissions. It doesn't take a once in a lifetime pandemic to shut us down but rather a few consecutive terms of the wrong party in power. Or the assasination of a health insurance executive to shift the political winds against the health insurance industry.

But even saying that, I am on record stating that the next big change could just a likely be a medicare 4 all model that makes every adult citizen a prospect, or Medicare at 62. Either of which would mean more business for us.

 

[bluediamond]

FL Blue didn't pay commission before 3-4 years ago. A lot of counties are stopping in 2025, maybe 2026. But, I'll bet they'll be back in soon.
I made it a decade not selling them and didn't lose sales. Won't happen now either.

I think a lot of companies underestimated the drug cap including Fl blue. $15 tier 3 is way too low. I have a guy hitting the cap with them next year after spending $80 or so.

Florida Blue did pay commissions before 3-4 years ago and always have paid on MAPD. Don't know going forward though.

 

[bluediamond]

Fl blue is non profit. I heard FB captive agents can now sell uhc and humana mapd

You are correct.

 

[bluediamond]

I wonder if their in house agents will be looking for a job? Have they announced the rate increase on MS yet?

As far as I know in house make salary and maybe a bonus.

 

[Chazm]

Florida Blue did pay commissions before 3-4 years ago and always have paid on MAPD. Don't know going forward though.

No, you had to be captive. A few years ago they opened MAPD up to independent agents.

 

[annon123]

Fl blue is non profit. I heard FB captive agents can now sell uhc and humana mapd

Interesting. I wonder if to sell UHC (presuming you are talking medicare products) the people that buy supps through them have to be AARP members when they buy the supps (not the MAP's).

 

[Chazm]

Interesting. I wonder if to sell UHC (presuming you are talking medicare products) the people that buy supps through them have to be AARP members when they buy the supps (not the MAP's).

If you're asking if a captive fl blue agent sells a UHC supp, does the client have to have aarp. Of course they do. Why would that change?

My guess, if they're captive, they still want them to sell the FL blue med Supp. Who also had another kind of big rate increase. They are now second highest, only to UA, in the county I just saw for a T65 Female.

 

[annon123]

If you're asking if a captive fl blue agent sells a UHC supp, does the client have to have aarp. Of course they do. Why would that change?

My guess, if they're captive, they still want them to sell the FL blue med Supp. Who also had another kind of big rate increase. They are now second highest, only to UA, in the county I just saw for a T65 Female.

Thanks for your answer. Weird that they'd have captive agents sell a competitor though.

 

[GoPokes]

Starting March 1 they are stopping most MAPD plan commissions. What's odd is they are paying on "new to FL blue at the renwal rate" but paying $0 on new to Medicare. Not even sure how that works or maybe I'm reading it wrong.

We need an agent representative to do a press release, in response, notifying the community that agent will be cutting FB enrollments.