Is this Correct?

[InsuranceJosh]

In California, which I pointed out had higher contracts, the street level for MA plans is $550. The GA contract is $610. There are 3 levels above GA ending with FMO. So I'm pretty sure my guess at 700-800 (at least here in CA) is correct.

The agent contract elsewhere is $400 so if the math still works, the FMO still is at $550-600.

Rick

I was wrong. I had to check the paper work and the FMO gets $510 in all states but CA

In CA it is $695.

And this is not by doing math. It is by reading the contract.

 

[patch36]

Unless you are located in Southern California and specifically are looking for duals, it's moot.

Anyway, all this will change shortly. Can we all be happy with $25 per month?

Rick

I am curious about where you got the $25 a month. Is it part of the compensation changes coming?

...and yes, I would be very happy with $25 a month. It would also encourage salespeople to build relationships and stay in contact with their clients, instead of the hit and run tactics we see from out of town groups coming in during AEP and leaving for good come the holidays.

 

[theinuranceguy]

I was wrong. I had to check the paper work and the FMO gets $510 in all states but CA

In CA it is $695.

And this is not by doing math. It is by reading the contract.

FMO deal for UHC is more than $510... Much more than $695 is CA also.

 

[GreenSky]

I was wrong. I had to check the paper work and the FMO gets $510 in all states but CA

In CA it is $695.

And this is not by doing math. It is by reading the contract.

I stand corrected. The MGA contract which is 2 steps below an FMO pays $645 for electronic enrollment. I just assumed the FMO would be about $100 more.

Is the $695 you quoted for electronic or paper or does it matter.

By the way, thanks for the information.

Rick

 

[GreenSky]

FMO deal for UHC is more than $510... Much more than $695 is CA also.

Okay, one of you is wrong!

I still tend to think that in CA the FMO would get something closer to $800 than $700 but I can't prove it since I don't have an FMO contract.

But either way, it's a lot of dough and as we know, FMOs are worth every nickle. They earn it, damn it!

Rick

 

[GreenSky]

I am curious about where you got the $25 a month. Is it part of the compensation changes coming?

...and yes, I would be very happy with $25 a month. It would also encourage salespeople to build relationships and stay in contact with their clients, instead of the hit and run tactics we see from out of town groups coming in during AEP and leaving for good come the holidays.

That's my best guess for compensation when CMS levels it out. Just don't know if it will apply to 2009 or 2010.

If the average first year commission is $500 and renewals $100, after leveling new and renewal, I can't see plans paying more than $300 a year - and that comes to $25 per month. Maybe less in other states.

I'm with you. I'll be much happier getting rid of the "hit and run" agents and allowing professionals to do our job. I don't like the incentive to move seniors every year.

In California, when an agent moves a senior from one Med Supp to another, the new carrier can only pay a renewal commission, not a new commission. Most carriers here are 20% new/10% renewal. Removes the big incentive to re-write people unless it really is beneficial.

Of course, when you have a carrier that pays the same percentage, I guess this goes out the window.

Rick

 

[InsuranceJosh]

That is for E-apps