Is the New 2025 CMS Rule for Agent compensation actually GREAT news for AGENTS and FMOs?

[Packerland]

So the guy who write one app is subsidized by the guy who does 10?

I really don't get it. why in the world is this getting unfunded

No FMO says if you write this many apps we will pay for these tools otherwise you don't

there is no steering involved, agents who have one contract and writes nothing have acess as much as the big producers

Vic, it's not that the funding is being cut; rather, the increase in compensation for agents isn't a windfall for agents that some think. The additional $100 for new to Medicare clients and a $50 raise for renewals now replaces reimbursements for things like completing an HRA AHIP testing, marketing expenses, free CRM's, free SunFire and Connecture, enrollment tools, direct mail reimbursement, event booths Etc.

The $100 raise is meant to cover these costs without relying on subsidies from higher-level distributors.

 

[Packerland]

Part D plans will pay $200? Seriously

Where did you see that

 

[Bevo]

Where did you see that

First paragraph of OP...


The new rules dropped yesterday and I am copying the most interesting paragraphs below. Here is my admittedly optimistic reading of this rule.
1. Agents will get a $100 increase in both MAPD and PDP commissions and CMS is anticipating adding an additional 2.5% on top of that. Commissions will be raised to $726 for MAPD for most states, and PDP's will have a massive increase to $200.

 

[DonP]

First paragraph of OP...


The new rules dropped yesterday and I am copying the most interesting paragraphs below. Here is my admittedly optimistic reading of this rule.
1. Agents will get a $100 increase in both MAPD and PDP commissions and CMS is anticipating adding an additional 2.5% on top of that. Commissions will be raised to $726 for MAPD for most states, and PDP's will have a massive increase to $200.

That’s correct on pdp’s although renewals in 2025 will still be $46 or so and not $100 until 2026. Also mapd renewals for 2025 will still be $310 and not $355 which kicks in in 2026.

 

[rmhaire]

The problem is MAPD and Supp don't pay high enough commissions with the cost of acquisition being so high if you are working leads. Especially if its replacement instead of T65.

If Sunfire ends up costing $$ ill just start doing my scopes within my CRM, I already have it done I just need to finalize a few things. Can just use Medicare.Gov and Carrier sites for Dr's and Meds.

On the contrary, replacements are one of the least expensive ways to build a book. Simply buy a list for $50 a month and start calling. Don't like the phone, then tighten the list and start knocking.

Want T65? Same list vendor and same technique.

Try adding FE for higher 1st year comp. You're talking to them anyway.

Selling insurance is easy. It's the marketing part you have to figure out.

 

[DonP]

The problem is MAPD and Supp don't pay high enough commissions with the cost of acquisition being so high if you are working leads. Especially if its replacement instead of T65.

If Sunfire ends up costing $$ ill just start doing my scopes within my CRM, I already have it done I just need to finalize a few things. Can just use Medicare.Gov and Carrier sites for Dr's and Meds.

You’re going to really need sun fire or connecture to compare plans . Thats huge . I find the drug entry and comparisons super easy . Personally I’ll pay for that . I remember when i first started Medicare in 2020 i used med.gov and it was a disaster . I recall putting a clients drugs in and something happened to the page and it erased everything . Had to start over . The issue of leads is big . For example a may 1 enrollment pays $200 . A June pays $175 and a July pays $150. The cost of leads for me the last yr if i were paying is the cheapest $50 a lead and the most expensive $100 . If I’m paying for my own leads it means I’ll only do direct mail for aep and oep . During the other months I’ll get some type of much cheaper digital leads . The new rules dictate you can only use a digital lead 1 time as there must be one to one consent . Although i highly doubt call centers will give one crap and still continue . Bottom line money talks . Flow of funds will be much less . Before money like water flowing . But irregardless of this rule i truly believe carriers were going to pull back huge in marketing money this aep as there bottom line under big pressure

 

[DonP]

On the contrary, replacements are one of the least expensive ways to build a book. Simply buy a list for $50 a month and start calling. Don't like the phone, then tighten the list and start knocking.

Want T65? Same list vendor and same technique.

Try adding FE for higher 1st year comp. You're talking to them anyway.

Selling insurance is easy. It's the marketing part you have to figure out.

I’d be very very careful cold calling or cold knocking for people presently on Medicare . Let’s be honest 90% of people you cold call or cold knock for Medicare that buy from you you’ll be selling mapd . If you replacing present mapd I’d 100% dig in to see if they have an agent . With my direct mail leads if they have an active agent they like i walk . I don’t want a shit show as 80% of the time that agent will come back and save it . It also sets you up for a complaint even though you did nothing wrong . 95% of complaints are initiated by an agent getting the client to file it

 

[sman]

Y’all do realize that Search & Save compares plans too? It’s $25 per month.

 

[vic120]

Vic, it's not that the funding is being cut; rather, the increase in compensation for agents isn't a windfall for agents that some think. The additional $100 for new to Medicare clients and a $50 raise for renewals now replaces reimbursements for things like completing an HRA AHIP testing, marketing expenses, free CRM's, free SunFire and Connecture, enrollment tools, direct mail reimbursement, event booths Etc.

The $100 raise is meant to cover these costs without relying on subsidies from higher-level distributors.

I could argue that the $100 - the $50 for HRA is really not that much

However that is really not the point

rather IF the Idea is to stop steering, how in the world does FMOs supplying tools fall into that when it is offered to all agents regardless of production and which plans they sell

 

[rmhaire]

I’d be very very careful cold calling or cold knocking for people presently on Medicare . Let’s be honest 90% of people you cold call or cold knock for Medicare that buy from you you’ll be selling mapd .

You and I had this conversation last year. And probably the year before that.

Simply increase your income filters, pick an area with low MA penetration and start calling or knocking. That 90% you referred to will drop to 50% or less. That's the marketing part.

And call or knock for supplements or FE. CMS can't say jack about that.