Just got this e-mail from my FMO. Here's a cut and paste:
Per CMS Marketing Chapter 3, section 120.4.2, we are updating our compensation schedule for 2015 effective enrollments to adhere to the new guidance:
“Plans/Part D Sponsors may only pay compensation for the current year enrollment. Payments may not be paid until January 1 and must be paid in full by December 31 of the enrollment year. Plans/Part D Sponsors may pay compensation annually, quarterly, monthly, or utilizing other schedules.”
2015 Commissions
Commissions which were paid weekly, will now be paid once per effective month of the enrollment at the mid-month point. The AEP enrollments with a Jan 1 effective date will be paid within first two weeks of January but no later than Jan 15th, 2015. As is still the case, commissions are pro-rated based on the effective date through the end of that calendar year.
Example: A Feb 1 effective would pay out at 11/12ths and a March 1 at 10/12th’s etc..
ICEP Payments
New to Medicare are also pro-rated based on the effective date through the end of the year.
Example: A July 1, 2015 effective New to Medicare enrollment is paid at the Year 2 amount of $204, prorated at 6/12th’s, or $102 until CMS confirms the ICEP status. Once confirmed, the $102 is charged back and the pro-rated New to Medicare amount 6/12th’s of $408, or $204 is paid. This may take up to 60 days before the Plan receives CMS confirmation of ICEP.
Renewal Payments
During 2014, the cycle was transitioned for all renewals to January. Renewal payments will now be paid on a quarterly basis i.e. January, April, July, and October
Example: Your universe of renewals as of Jan 1, 2015 is $1000. Your payment schedule will be as follows (considering no chargeback): $250 paid on Jan 15th, $250 on April 15th, $250 on July 15th and $250 on October 15th.
If a member disenrolls after the 1st quarterly payment is made, a pro-rated chargeback will occur during the 2nd quarterly payment.
Example: A member terminates effective 2/1/2015. A pro-rated chargeback will be made for 2 months (Feb & March) in the April renewal payment.
Commission Statements
Commission statements will still be posted on a weekly basis. Remember that a “Preliminary” statement can change as enrollments and adjustments are updated between payment periods. A “Final” statement is what you can expect to be paid on for the next scheduled payment
Per CMS Marketing Chapter 3, section 120.4.2, we are updating our compensation schedule for 2015 effective enrollments to adhere to the new guidance:
“Plans/Part D Sponsors may only pay compensation for the current year enrollment. Payments may not be paid until January 1 and must be paid in full by December 31 of the enrollment year. Plans/Part D Sponsors may pay compensation annually, quarterly, monthly, or utilizing other schedules.”
2015 Commissions
Commissions which were paid weekly, will now be paid once per effective month of the enrollment at the mid-month point. The AEP enrollments with a Jan 1 effective date will be paid within first two weeks of January but no later than Jan 15th, 2015. As is still the case, commissions are pro-rated based on the effective date through the end of that calendar year.
Example: A Feb 1 effective would pay out at 11/12ths and a March 1 at 10/12th’s etc..
ICEP Payments
New to Medicare are also pro-rated based on the effective date through the end of the year.
Example: A July 1, 2015 effective New to Medicare enrollment is paid at the Year 2 amount of $204, prorated at 6/12th’s, or $102 until CMS confirms the ICEP status. Once confirmed, the $102 is charged back and the pro-rated New to Medicare amount 6/12th’s of $408, or $204 is paid. This may take up to 60 days before the Plan receives CMS confirmation of ICEP.
Renewal Payments
During 2014, the cycle was transitioned for all renewals to January. Renewal payments will now be paid on a quarterly basis i.e. January, April, July, and October
Example: Your universe of renewals as of Jan 1, 2015 is $1000. Your payment schedule will be as follows (considering no chargeback): $250 paid on Jan 15th, $250 on April 15th, $250 on July 15th and $250 on October 15th.
If a member disenrolls after the 1st quarterly payment is made, a pro-rated chargeback will occur during the 2nd quarterly payment.
Example: A member terminates effective 2/1/2015. A pro-rated chargeback will be made for 2 months (Feb & March) in the April renewal payment.
Commission Statements
Commission statements will still be posted on a weekly basis. Remember that a “Preliminary” statement can change as enrollments and adjustments are updated between payment periods. A “Final” statement is what you can expect to be paid on for the next scheduled payment
