Medicare Advantage FMO Overrides

[wehotex]

If there are no additional layers of hierarchy between the FMO and the agent the override is between $150 and $200 depending on the carrier. If there are layers in between (SGA, MGA etc.) then the override shrinks because the layers in between are paid out of the total override.

If the agent goes directly to the FMO (bypassing SGA, MGA), does the FMO portion increase by those amounts that would have gone to the SGA, MGA?

 

[Todd King]

If the agent goes directly to the FMO (bypassing SGA, MGA), does the FMO portion increase by those amounts that would have gone to the SGA, MGA?

Of course. For an example, let's say the total payout for a MA product is $600. If the agent gets $400 for the sale, then the other $200 goes up the line. If there are no SGA's, MGA's or GA's in the mix, then it all goes to the FMO.

 

[Josh]

If the agent goes directly to the FMO (bypassing SGA, MGA), does the FMO portion increase by those amounts that would have gone to the SGA, MGA?

Let's say the FMO cut is $500 and street is $250.

FMO gets paid $500 regardless.

If they have an agent direct, they keep the spread.

If the agent doesn't have a downline and meet CMS's requirements for a higher contract level then they cannot get paid a higher amount than street.

 

[nocamo33]

The MGA contract for UHC is about $100 over street. The SGA gets more and the FMO gets even more. My guess is about $150-200 total (maybe even higher).

But it's not like they don't work for it. Someone has to forward emails from the companies.

Rick

I know this is old but the last two sentences, LOLOL!!!!

 

[wehotex]

Let's say the FMO cut is $500 and street is $250.

FMO gets paid $500 regardless.

If they have an agent direct, they keep the spread.

If the agent doesn't have a downline and meet CMS's requirements for a higher contract level then they cannot get paid a higher amount than street.

I'm under an agent (who was granted FMO status, it's what he told me) who gets about this amount . I suspect that he keeps any leads that come from his upline instead of passing them down. This business is full of crooks. He's not even the worst that I've seen.

 

[Josh]

I'm under an agent (who was granted FMO status, it's what he told me) who gets about this amount . I suspect that he keeps any leads that come from his upline instead of passing them down. This business is full of crooks. He's not even the worst that I've seen.

I actually believe all businesses deal with crooks, but insurance is certainly no exception!

 

[kstein]

At one time about 5 years ago a local plan handed out fmo contracts like candy without regard to downline agents or production.

Our agency was awarded the fmo contracts and we received a new to Medicare commission around $750 vs the $400 or so the street comp paid.

Unfortunately that company was audited by Medicare after a year or so and paid renewal commissions in line with what cms regs said. A number of people lost their jobs at that time.

I remember being kinda shocked(and really kinda pissed) at the difference between street and fmo given that I feel the agent does a lot more to secure the biz.

 

[myinsurebiz]

Let's say the FMO cut is $500 and street is $250.

FMO gets paid $500 regardless.

If they have an agent direct, they keep the spread.

If the agent doesn't have a downline and meet CMS's requirements for a higher contract level then they cannot get paid a higher amount than street.

Sure they can . . .

 

[myinsurebiz]

I actually believe all businesses deal with crooks, but insurance is certainly no exception!

Imagine that . . .

 

[myinsurebiz]

IMO / FMO can pay the writing Agent what ever they wish out of their spread . . .