Medicare Advice For A Fee?

[MatthewC]

There are a few companies out there that charge a fee for Medicare Advice.
One is https://www.65incorporated.com/

Seems odd to pay for such a service, especially when the cost of "advice" is built into insurance premiums.

Thoughts? Any one encounter these up fron fee organizations or clients?

 

[yorkriver1]

A number of clients have asked how much they owe me for my time. I explain the carrier pays me, at no extra cost to them.

Having thought about consulting fees, I have decided the work it would take to get contracts drawn up that were compliant with state laws on insurance consulting, get and pay the fee for a consultant's license, then all the explanations involved, not worth it so far. Haven't looked into whether my E&O would cover that exposure.

 

[vic120]

I am pretty sure I remember in some training not sure if it was in continue ed but I remember it was mentioned that one can get paid as a consultant but cannot also get paid as agent of record, It would be one or the other,I will say I don't believe I spoke to 1 prospect that was seriously considering paying a consultant and even if I found 1 after the I don't know how many hundreds of prospects I spoke to, I just find it a non Issue

 

[somarco]

65inc puts themselves out there as independent, no axe to grind, unbiased advice. Pretty sure they have an agency behind them. Someone has put a LOT of $$$ behind them to build the site, promote it, etc.

My guess is the folks that use their services are essentially paying for the privilege to be referred to an "independent" agent who will help. Something like the Dave Ramsey model, except here the fish pay up front and on the back end (commissions built into the product).

 

[vic120]

65inc puts themselves out there are independent, no axe to grind, unbiased advice. Pretty sure they have an agency behind them. Someone has put a LOT of $$$ behind them to build the site, promote it, etc.

My guess is the folks that use their services are essentially paying for the privilege to be referred to an "independent" agent who will help. Something like the Dave Ramsey model, except here the fish pay up front and on the back end (commissions built into the product).

Cant they get into serious trouble that way? Arent they not supposed to have conflict of interest?

 

[somarco]

How can they get in trouble by simply charging a consulting fee? Some states do have a counselor's license and maybe they have one, maybe not.

Fee only planners exist in several fields and operate with impunity.

Of course they are not necessarily without bias.

 

[vic120]

I mean by accepting money from an agency, And then referring clients there after getting paid a consultant fee (which is supposed to be non biased), Unless I misunderstood what you were saying

Not that it really will change my world, Just curious

 

[somarco]

I know a couple of agents on this forum that work with fee based financial planners. Fred and Ethel go see Mr. Planner for advice. He tells them they need to consult with Mr Somarco regarding their Medicare options.

Mr. Planner collects his fee.

Mr. Somarco collects his commission.

Where is the conflict?

 

[vic120]

I mean if it a financial planner dealing with a bunch of stuff (not just medicare) & money is not being passed between the 2 entities I see no conflict,

However if a fee based consultant get money from the agency and then After advertising themselves as unbiased refers every one to that agency that's just not right

Especially on their site it does not appear they are financial planner but giving advice on medicare plans.

By making themselves out as unbiased and accepting money from the agency as well (obviously payment for passing the referrals on) Just seems shady.

 

[yorkriver1]

Cant they get into serious trouble that way? Arent they not supposed to have conflict of interest?

You probably heard something to this effect in a CE class, and there is one situation where doing both is not allowed. I have been a licensed insurance instructor for 12+years, so reviewing this reg numerous times a year while I was still teaching. (stopped last fall before triple open season)

It's not in this guide, http://www.scc.virginia.gov/boi/pro/files/consult.pdf
which explains requirements for insurance consultants in Virginia, but one of the regs in Virginia is that you can contract with the client that you will receive both a consulting fee and commission on a sale as long as you are not selling/contracting with a "public body". (cities, counties, etc)

Insurance consulting in our state requires a separate license, and consultants who also sell have to also have an insurance license. It's also not ok to call oneself a consultant if not licensed and following the rules about contracts, etc.

The parallel in finance, fee only planners and fee based planners who also get commission on sales. OK, if properly licensed and disclosed to client.