Looks like max commission in 2025 will be $635

[DonP]

Looks like cms will make a new total payout of $635 in 2025. On the present comp the “ overide is a administrative fee” paid by the carrier to upilines . In 2025 no commissions above the max of $635 can be paid out period . So no overides and no marketing money can be paid . This is considered steering ( the big carriers using huge money to “bribe “ agents and fmos to sell their product “ ) . I find it hard to believe all these Medicare fmo’s just die instantly . What’s ti prevent carriers from chopping agent comp 30-40% and giving that to the uplines ? Little agent gets screwed again

 

[policywonk]

Looks like cms will make a new total payout of $635 in 2025. On the present comp the “ overide is a administrative fee” paid by the carrier to upilines . In 2025 no commissions above the max of $635 can be paid out period . So no overides and no marketing money can be paid . This is considered steering ( the big carriers using huge money to “bribe “ agents and fmos to sell their product “ ) . I find it hard to believe all these Medicare fmo’s just die instantly . What’s ti prevent carriers from chopping agent comp 30-40% and giving that to the uplines ? Little agent gets screwed again

Do you know if when an FMO buys a book of business from an agent are they also getting the overrides the agents current FMO was earning or just the agents renewals?

 

[DonP]

Do you know if when an FMO buys a book of business from an agent are they also getting the overrides the agents current FMO was earning or just the agents renewals?

That’s a really good question I never thought about . But I bet you a dime to a dollar overrides cease as the overrides were an agreement between a different fmo and carrier . They won’t transfer

 

[mmike160]

Looks like cms will make a new total payout of $635 in 2025. On the present comp the “ overide is a administrative fee” paid by the carrier to upilines . In 2025 no commissions above the max of $635 can be paid out period . So no overides and no marketing money can be paid . This is considered steering ( the big carriers using huge money to “bribe “ agents and fmos to sell their product “ ) . I find it hard to believe all these Medicare fmo’s just die instantly . What’s ti prevent carriers from chopping agent comp 30-40% and giving that to the uplines ? Little agent gets screwed again

CMS wants the commission going to the agent not the "middlemen" as they called FMOs in their proposed rule.

 

[DonP]

CMS wants the commission going to the agent not the "middlemen" as they called FMOs in their proposed rule.

Unfortunately this hurts high producing agents who were getting substantial coop money . Also no hra money anymore . The agent will have to pay for Sunfire or Connecture or use search and safe . They need to up the comp $100 an app to cover some of this . But cms cut the funding off to the terrorist organization ( call centers ) . I see no way how must call centers can survive without the $250 override and the $150 or so marketing money an app . 90% of sales are $301 . Give $100 to the agent and lead costs take you negative. But unfortunately this extra huge cash to the carriers bottom line not paying this will be used for 10 times more commercials.

 

[InsuranceGuy29]

CMS wants the commission going to the agent not the "middlemen" as they called FMOs in their proposed rule.

The problem is, does anyone actually think the FMO's are gonna take the brunt of this hit? Brokers still need to contract through FMO's to get most contracts. FMO's still need money to operate.

Sure, they're gonna have to take some of the hit, but like all things in life, "the little guy" (brokers) will feel it the most, as FMO's will probably slash broker compensation.

Most FMO's take at least 25% from brokers right now. My guess is it will go up to 50% after this. After this fee plus taxes, you write a policy for $301/year, you'll be lucky to come away with $80/year for a client. That breaks down to about $6.66/month. Might as well just go work at WalMart.

For new brokers, it'll take them 20 years to start making good money, assuming they work 12 hours days and barely ever sleep. An intervention is DEFINITELY needed in this, because these lawmakers and bureaucrats are clueless on this issue.

 

[sshafran]

Cut out FMOs 100% and raise Indy comp by 20% (modest - now we pay for tools, OK), then create carrier training team (think broker services department, but better).

I'm down with that. FMOs are often a hindrance, not a help. Ever need an appointment in a non-res state with a carrier and they say your fmo must request so you contact the FMO and 2 weeks later you're still waiting then Sally signs with someone else...

 

[DonP]

The problem is, does anyone actually think the FMO's are gonna take the brunt of this hit? Brokers still need to contract through FMO's to get most contracts. FMO's still need money to operate.

Sure, they're gonna have to take some of the hit, but like all things in life, "the little guy" (brokers) will feel it the most, as FMO's will probably slash broker compensation.

Most FMO's take at least 25% from brokers right now. My guess is it will go up to 50% after this. After this fee plus taxes, you write a policy for $301/year, you'll be lucky to come away with $80/year for a client. That breaks down to about $6.66/month. Might as well just go work at WalMart.

For new brokers, it'll take them 20 years to start making good money, assuming they work 12 hours days and barely ever sleep. An intervention is DEFINITELY needed in this, because these lawmakers and bureaucrats are clueless on this issue.

Fmo’s don’t control agent mapd comp carriers do . Cms lists the maximum comp allowed to agents . Any carrier can allocate that $600 how they want . They could give $400 instead of $600 to the agent and the rest to the fmo . If they do that there’s great risk if some carriers cut out the fmo . All agents will write the much higher comp . It was ludicrous If I wrote a $301 mapd and the fmo makes $250 . Most of the marketing money an agent got from the fmo was given to them by the carrier . I knew something had to give . 10’s of thousands of agents rushing into nedicare the last 5 yrs . Agents showing their $100k a month override checks on Facebook . Who’s screwed big is integrity. They bought all these agencys for 8-12 times commissions. Humana looks like a winner . They get to keep all that override now . All those Ifg agencys were opening offices and call centers like candy .

 

[wehotex]

Looks like cms will make a new total payout of $635 in 2025. On the present comp the “ overide is an administrative fee” paid by the carrier to upilines . In 2025 no commissions above the max of $635 can be paid out period . So no overides and no marketing money can be paid . This is considered steering ( the big carriers using huge money to “bribe “ agents and fmos to sell their product “ ) . I find it hard to believe all these Medicare fmo’s just die instantly . What’s ti prevent carriers from chopping agent comp 30-40% and giving that to the uplines ? Little agent gets screwed again

Even a “little agent” has a minimum threshold of commission expectation that he has to make. If they were to redistribute commissions like that, there would be a worker bee shortage.

 

[AgentGeneral]

All I want to know is where my commish across three carriers for the butt load of T65s written since Sept 1st is

Anyone know?

I'll worry about this after Dec 7th. haha