MA Paid As Earned Commission?

[Roy2015]

Hi guys...I am thinking about not taking any advances and just getting paid as earned on everything i write. I was just wondering how you get paid as earned on MA commissions?

I mean if it is a zero premium and the client is not making monthly payments. How does this work with MA products?

If the first year commission is $408...then do you just divide this by 12 and that is what you get a month? And are the $200 annual renewal commissions paid in a lump sum or monthly?

Any answers are greatly appreciated! Thanks!

 

[WCMason]

Hi guys...I am thinking about not taking any advances and just getting paid as earned on everything i write. I was just wondering how you get paid as earned on MA commissions? I mean if it is a zero premium and the client is not making monthly payments. How does this work with MA products? If the first year commission is $408...then do you just divide this by 12 and that is what you get a month? And are the $200 annual renewal commissions paid in a lump sum or monthly? Any answers are greatly appreciated! Thanks!

No way I know of to go as earned for the current calendar year; you will go as earned starting in January for anything issued in the current year. I suppose if one is captive and not paid directly by the carrier the agency could work out something to pay you monthly, but I'd never do that.

 

[Chazm]

Pretty sure you can't go as earned with MAPD and there is no reason too. You don't pay interest on it like most Med Supps

 

[sshafran]

Hi guys...I am thinking about not taking any advances and just getting paid as earned on everything i write. I was just wondering how you get paid as earned on MA commissions?

I mean if it is a zero premium and the client is not making monthly payments. How does this work with MA products?

If the first year commission is $408...then do you just divide this by 12 and that is what you get a month? And are the $200 annual renewal commissions paid in a lump sum or monthly?

Any answers are greatly appreciated! Thanks!

2nd year you'll be good to go... if they don't change carriers.

You can go as-earned on Med Supps....

 

[JimmyUt]

Pretty sure you can't go as earned with MAPD and there is no reason too. You don't pay interest on it like most Med Supps

I have a couple guys I know who do it. They have enough renewals that it doesn't matter to get big chunks. That being said, the persistency is so good and with no interest being charged I am not sure why anyone wouldn't take the chunk upfront unless thr plan forces us to do so. Our local carriers only pay full commission if new to mapd out here even during aep. Otherwise we get paid like a renewal on a monthly basis.

 

[sirherbie]

I've not sold a med sup yet but am about to start selling a few. I'm assuming med sup co's advance the whole first 12 months then go as earned after the first yr?Also do all med sup carriers charge interest and if so what % do most charge?

 

[MedicareAgent]

All the answers for your questions are in your contract.
I do not know any contracts that allow you to take as earned on first year mapds.
Med supps you can take as earned.

 

[Chazm]

I've not sold a med sup yet but am about to start selling a few. I'm assuming med sup co's advance the whole first 12 months then go as earned after the first yr?Also do all med sup carriers charge interest and if so what % do most charge?

Yeah it's in your contract. I just signed 5 med Supp contracts in the last 30 days and they all had it in there. It'll say, 3 month, 6 month or 9 month renewals, usually. And if you leave it blank it'll be as earned. Or they may have a, "as earned" box.
I think they all charge interest but here in FL, UHC does not.

 

[Roy2015]

Thanks for everyone's response. I guess with the high persistency rate and no interest charged for MAPD plans it would not make very much sense anyways to not take the first year comm upfront.

 

[somarco]

if it is a zero premium and the client is not making monthly payments. How does this work with MA products?

No one addressed this question........