It Does Not Look Good for Agents Selling Medicare Supplements.

[Superchief]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

At this point in time, FMO's are endangered. If the total sales comp is 5% to 10% then the carriers in this modern high tech age will deal direct with the street agent. Sorry FMO's, but, lets get real!

FMO's aren't endangered alone (all agents are) and certainly not because of the new bill, but because technology is creating a shift in the market where companies can and will bring the product direct to consumer. United of Omaha's E-app is a perfect example.

FMO's are less endangered in my opinion as other products will always exist and all they need to do is change markets. Easier to do for them than a solo field agent who hasn't adapted.

 

[Russ]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

I just got of the phone with Department of Insurance, and this is what I was told: "Medicare supplement Insurance is health Insurance that is offered by private Insurance Companies, and must be in compliance with the new mandates that were just passed, including G.I. and the 80% rule."

Another hole in the ship.

Jack C....looks like you were correct...3 to 5% commish.

Let's see...on a $200 a month premium...advanced annually...minus the part B deductible, that isn't commissioned...that leaves...$187.50 X 12 months X .04% commission= a whopping $90 before taxes and expenses!

WOOHOO!

 

[Jack C...]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

Another hole in the ship.

Jack C....looks like you were correct...3 to 5% commish.

Let's see...on a $200 a month premium...advanced annually...minus the part B deductible, that isn't commissioned...that leaves...$187.50 X 12 months X .04% commission= a whopping $90 before taxes and expenses!

WOOHOO!

I wish I was not correct Russ, believe me.

A few on here said I was "starting rumors", was saying the "sky was falling" and etc... But that is not the truth, and nice to see that the truth is finally being accepted.

My only intention was to give you the information faster than you will get it from the Insurance Company, and your up line.


Jack C.

 

[G.Gordon]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

Another hole in the ship.

Jack C....looks like you were correct...3 to 5% commish.

Let's see...on a $200 a month premium...advanced annually...minus the part B deductible, that isn't commissioned...that leaves...$187.50 X 12 months X .04% commission= a whopping $90 before taxes and expenses!

WOOHOO!

Hey... have goals. Rack up 1000 med sups. 1000 x $90 is still a decent living. Now what some of us are used to, but a livable wage.

 

[MedSuppPro]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

FMO's aren't endangered alone (all agents are) and certainly not because of the new bill, but because technology is creating a shift in the market where companies can and will bring the product direct to consumer. United of Omaha's E-app is a perfect example.

FMO's are less endangered in my opinion as other products will always exist and all they need to do is change markets. Easier to do for them than a solo field agent who hasn't adapted.

I Agree...

MedSupp FMO's whom are dependent on to the MedSupp Biz will suffer the greatest pain as compared with the old-line FMO's whom are diversified and will survive. My point is FMO will be eliminated from the MedSupp Biz as there will be a logical migration towards the direct field agent.

Bottom line is cost...

The indy agent at the street level will play a role in distribution and this can be accomplished today through greater technology. Why would a lean running carrier buy into an extra layer of FMO's? So my post simply pointed to the fact that MedSupp dependent FMO's are toast.

At best, eApps are a concept in eyes of the consumer. Most of my clients don't purchase insurance on line. I pity the carrier whom thinks they can offer a MedSupp through some web site portal and not have an indy field force. Frankly, I could see some of the FMO's doing more of the eApp type marketing.

I for one promise you that I'm looking at the diversification issue or a new occupation. Shouldn't the Government classify us agents as DISPLACED WORKERS and help pay for our re-schooling? I think Hillary promised us that when she proposed her plan. As a commission agent I can't get unemployment.

 

[alldaytuesdays]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

For you optimists (if there are still any), I like your style, I'm an optimist by nature too. But look at it this way...

If you were a mechanic and the shop owner was told he could only make X amount of profit and had a new set of Gub'mint 'rules' to play by, what do you think would happen to you? Whatever the shop owner's reduction in profit was, would be passed on to you, the mechanic, in some form.

We work for insurance companies (sure, most of us are 1099), but they are the ones paying us. The amount of money they, the insurance companies, can make is being severely limited (some would say eliminated). As such, there is NO way that the amount of money we can make in this business will not, in turn, be severely limited.

 

[Jack C...]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

Look at the bright side........at least we dont all live in Detroit.

 

[Superchief]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

I Agree...

MedSupp FMO's whom are dependent on to the MedSupp Biz will suffer the greatest pain as compared with the old-line FMO's whom are diversified and will survive. My point is FMO will be eliminated from the MedSupp Biz as there will be a logical migration towards the direct field agent.

Bottom line is cost...

The indy agent at the street level will play a role in distribution and this can be accomplished today through greater technology. Why would a lean running carrier buy into an extra layer of FMO's? So my post simply pointed to the fact that MedSupp dependent FMO's are toast.

At best, eApps are a concept in eyes of the consumer. Most of my clients don't purchase insurance on line. I pity the carrier whom thinks they can offer a MedSupp through some web site portal and not have an indy field force. Frankly, I could see some of the FMO's doing more of the eApp type marketing.

I for one promise you that I'm looking at the diversification issue or a new occupation. Shouldn't the Government classify us agents as DISPLACED WORKERS and help pay for our re-schooling? I think Hillary promised us that when she proposed her plan. As a commission agent I can't get unemployment.

Field agents are on the way out. Much quicker than FMO's. Think E-surance.com. That's where it's headed. Seniors are getting to the point quicker where they're not interested in seeing some schlepper at their kitchen table.

More and more they are shopping online for the info then making a phone call for the policy. Mutual of Omaha already has a direct to consumer division handling med supps.

 

[Yoda]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

I just got of the phone with Department of Insurance, and this is what I was told: "Medicare supplement Insurance is health Insurance that is offered by private Insurance Companies, and must be in compliance with the new mandates that were just passed, including G.I. and the 80% rule."

How do explain that you are making this post at 7:37am in the morning and the DOI is not even open yet? Im sorry but based upon the evidence it dont look good for you.

 

[DS4]

Re: It Does Not Look Good for Agents Selling Medicare Supplements

Are any of you certified to sell PDP's???
If so, you already know what health insurance commissions will look like in the future.