MAPD Renewal Commissions

[diamondclub]

Hi everyone, been lurking around here for sometime and have received quite a bit of useful information.

I am confused about MAPD renewal commissions and CMS regs.

I work for a captive agency that pays a fair first year commission on the mapd plans but they keep the entire renewals.

My question is: Doesn't CMS say the agent does receive the renewal commissions? If so who do you report your agency to?

Thank You

 

[Dave020]

What does your contract with your captive agency say in regards to renewal commissions?

Did you assign your commissions to the captive agency?

 

[gboylan21]

carriers are required to pay the agency or your upline. you assigned your commisions to them and it more than likely states that in your contract. its time for you to go independent. With no renewals you are not losing anything, you ll set yourself up with a salary in a year.

 

[Midlevel]

Renewals are the lifeline of this business. Without them you are no different then the 9 to 5 person who has to have a real job and keep making new money every day. I get paid the same whether I sleep the day away or actually get out of bed. Of course, I'm always looking to add new clients but you get the point I'm sure.

 

[sman]

Hi everyone, been lurking around here for sometime and have received quite a bit of useful information.

I am confused about MAPD renewal commissions and CMS regs.

I work for a captive agency that pays a fair first year commission on the mapd plans but they keep the entire renewals.

My question is: Doesn't CMS say the agent does receive the renewal commissions? If so who do you report your agency to?

Thank You

As others have asked, what does your agency contract say? You likely signed some paperwork when you went to work for them. If commissions are assigned to the agency, then there is nothing you can do other than leave the agency. Reporting them to someone won't do you any good if you have assigned commissions to them unless they are somehow breaking the agreement.

Keep in mind if you leave the agency, that agreement you signed probably has a non-compete clause as well. Stating something along the lines that you can't go after those clients for a specified period of time.

Your one other option is to try and renegotiate a deal with the agency to get some of the renewals. I couldn't imagine spending all my efforts to gain new clients and then get no future reward out of those efforts. Renewals make your life so much easier.

Sounds like you've learned a valuable lesson early on in your career. And that is, NEVER, NEVER, NEVER assign commissions.