MA Plans should pay commission like Med Supps

[Joe Moore]

I've been thinking out what CMS is trying to do and I have finally come to the conclusion that they are correct. We should be paid just like we're paid on Med Supps. That is, we should receive commission as a percentage of the premium.

Since CMS pays the premium to the insurance company, we must use this amount upon which to base our commission.

The average premium paid for an MA plan is something in excess of $800 per month. This is $9,600 per year. If we are paid only 17% commisison, we should receive a check for $1,632 per year, or $136 per month. Since most carriers will pay us for at least 6 years, I suggest MA plans do this as well.

CMS is correct. Agents are not being paid properly for this type of policy.

Problem solved. Let's get on with selling.

Rick

Rick,
In TN the cost of living is much less than CA, so our TN agents have said they would do it for 10%. I do like the way you are thinking on this.

 

[midwestbroker]

If they go to this model, I can see it now...

You will earn 15%

2 days later...make that 12%

5 hours later...make that 13.725% (It's the government after all)

Then you will have companies giving advances, which will put us right back to where we are now.

 

[Newby]

This all reminds me of when I was back in the Motorcycle/Powersports business back in the 80s.

Two senators (Al Gore and Danforth) decided that ATVs (3-wheeled and 4-wheeled off-road vehicles) were too dangerous to sell in the USA.

The government came up with new rules every month of hoops we had to jump through to sell them and most of it was completely ridiculous.

If someone walked into our showroom asking to see the ATVs we actually had to require them to sit in an enclosed room (with no ATVs in it) and watch a 25 minute government video tape explaining how an ATV can kill you. Only AFTER they watched the video, could we even show them the vehicles. Most of these people buying ATVs were farmers and/or deer hunters who had already owned several of them and were just buying a new one.

The real crazy part was by the governments own reports, motorcycles were 22 times MORE dangerous than ATVs but there was no regulations with selling motorcycles. It all really had to do with AL Gore wanting to ban off-road vehicles for enviromental reasons.

When politicians get involved, anything can happen and it doesn't have to make sense.