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

[hockeyday]

In 2025 i’m in the same boat as all other agents . I got 40-$50 k marketing money out the door . What will you do with no marketing money? Outside aep I’d do no dsnp direct mail . I’m not in Indiana a few friends are. I was stating that will be the norm at some pt nationwide .My last mailing would have been near $100 a mailer if i were paying it .I’ll probably work on some type of post card like you for T-65.Call and door knock my big book of business for life ins and referrals . Honestly i don’t want to grow anymore just maintain .

That's where I'm at if I can do 15-20 t65s can keep the book in shape I'm good , I think the next move for ga's and fmo’s will be buying books ,I got 2 totally unsolicited emails this weekend from 2 fmo’s in Michigan already looking, I replied to both 4.5 is my number and pay me as a capital gains transaction, one replied that the would like to talk , I'm not ready to sell but if someone wants to give me 1.5 million I probably would call a family meeting and have that discussion

 

[DonP]

I don't know there is a monopoly isn't there

Do they not usually allow the carriers be the ones to interpret and enforce?

not saying it is but certainly not out of the realm of possibilities not by a long shot

I’ve read the ruling back and forth . This much i know. No marketing money . No hra money . They increased comp $100 and said “ this is for the agent to pay for stuff he needs “ . So you really believe they nailed the agent huge and will leave the people who override alone . They specifically said no overrides . No more can be given out above the fmv street level . I guess it’s possible the carriers could make deals directly with fmo’s for some things . But the mga,ga made comp overrides on enrollments . That can’t be paid anymore directly from the carrier

 

[vic120]

I’ve read the ruling back and forth . This much i know. No marketing money . No hra money . They increased comp $100 and said “ this is for the agent to pay for stuff he needs “ . So you really believe they nailed the agent huge and will leave the people who override alone . They specifically said no overrides . No more can be given out above the fmv street level . I guess it’s possible the carriers could make deals directly with fmo’s for some things . But the mga,ga made comp overrides on enrollments . That can’t be paid anymore directly from the carrier

I have not read it but listened and read many who have and seem to say it does not specifically say there will not be overrides

they all seem to be saying this is going around but is not true, and there is language that seems to indicate that FMOs will still be paid on the buis

just they cannot give back to the agent

 

[DonP]

That's where I'm at if I can do 15-20 t65s can keep the book in shape I'm good , I think the next move for ga's and fmo’s will be buying books ,I got 2 totally unsolicited emails this weekend from 2 fmo’s in Michigan already looking, I replied to both 4.5 is my number and pay me as a capital gains transaction, one replied that the would like to talk , I'm not ready to sell but if someone wants to give me 1.5 million I probably would call a family meeting and have that discussion

I know you’re doing t-65 now . But isn’t a large % of your book dsnp and lis ? I mentioned several times books will be more valuable . But 4.5 times ? never heard of a single agent anywhere getting over 2.5 times book. With all the uncertainty that a crazy multiple . The average mapd stays on the books 3 yrs i read . So you want as a capital gain to pay the flat 20% instead of it being dragged out 5 yrs paying ordinary income tax? Also I’ve never heared of anyone paying cash up front on even a 2 multiple . it’s usually paid out in 2-5 yrs

 

[vic120]

I’ve read the ruling back and forth . This much i know. No marketing money . No hra money . They increased comp $100 and said “ this is for the agent to pay for stuff he needs “ . So you really believe they nailed the agent huge and will leave the people who override alone . They specifically said no overrides . No more can be given out above the fmv street level . I guess it’s possible the carriers could make deals directly with fmo’s for some things . But the mga,ga made comp overrides on enrollments . That can’t be paid anymore directly from the carrier

Personally would wait till there is more info but I don't believe for a second the FMOs are going to get pushed out

Its always the agent who gets hurt

all I see is the agent gets a little more a pays a lot more
FMOs get paid a little less but put out a LOT less

 

[DonP]

I have not read it but listened and read many who have and seem to say it does not specifically say there will not be overrides

they all seem to be saying this is going around but is not true, and there is language that seems to indicate that FMOs will still be paid on the buis

just they cannot give back to the agent

I’ve listened to at least 10 podcasts . Your correct fmo’s seem to think they’d get paid BUT it won’t be overrides . If they’re paid it will be some other way . But the ga’s and mga’s won’t get a dime . I’d never allow anyone to make a penny on me without somehow giving me money back if I’m paying all my own expenses . Maybe a flat fee agreement . The fmo can’t technically pay my expenses so what good is he to me ?He’s worthless to me

 

[hockeyday]

I know you’re doing t-65 now . But isn’t a large % of your book dsnp and lis ? I mentioned several times books will be more valuable . But 4.5 times ? never heard of a single agent anywhere getting over 2.5 times book. With all the uncertainty that a crazy multiple . The average mapd stays on the books 3 yrs i read . So you want as a capital gain to pay the flat 20% instead of it being dragged out 5 yrs paying ordinary income tax? Also I’ve never heared of anyone paying cash up front on even a 2 multiple . it’s usually paid out in 2-5 yrs

Most of the deals being done that I know of are paying out 1st year 80% , I know of a few deals here in Michigan that closed in 2023 that were just over 3 multiple,
I have around 50 dsnp plans, I sold a hunk of that book two years ago to get the money to buy a 20 unit apartment building

 

[DonP]

Most of the deals being done that I know of are paying out 1st year 80% , I know of a few deals here in Michigan that closed in 2023 that were just over 3 multiple,
I have around 50 dsnp plans, I sold a hunk of that book two years ago to get the money to buy a 20 unit apartment building

God bless them . Reading tons of people who buy books I’ve never heard of anyone paying 3 times for a mapd book . In the last 12 months I’m running 95% persistency with my dsnp book . I’ve got tons of dsnp on the books 2 plus yrs . I’ve formed relationships . I’d never sell my book for less than 2.5 times . I’ll sit at home and take calls 20-30 hrs a week and let it whittle to nothing in 5 -7 yrs .

 

[rmhaire]

I’ve read the ruling back and forth . This much i know. No marketing money . No hra money .

The reason CMS is taking away the marketing money is to keep you from having an aneurysm over marketing money.

Damn son. Take a deep breath. Everything's going to be just fine.

Now as far as the other stuff ..... you're screwed.

 

[Yagents]

I'm at a loss, maybe this helps

NAHU Washington Update - 04/05/2024

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