Medicare - Release from Upline during AEP

[LHmedicare]

I switched FMO's right before AEP to a local company where I have face to face support. Of course my prior FMO (UIG) is not releasing one of my carriers and after researching I found out the commissions paid out for MAPD's was less than half of the CMS recommended commissions for my state. In 2018 I was cheated out of over $4k in MAPD commissions. UIG is refusing to release one of my insurance carriers /contracting. I have not submitted any prior business under this carrier. My new FMO pays commissions based on CMS for MAPD, UIG pays less than half. UIG pays MAPD $240 - CMS allows $601.00 There is a huge difference in the commission. I had to submit a bunch of apps already to UIG and have asked them to match the commission. I get my leads directly from this insurance carrier and NO support of leads from UIG and they are taking more than half my commission per application. I have filed a complaint but not sure if that will be helpful. Is there anything else I can do??? Please help

 

[StephanieCJ]

If you haven’t submitted any prior business, there should be no reason to hold you. Have you reached out to your new FMO? I know they are generally happy to help as it means money in their pockets. As far as matching the commission, highly doubt that is going to be a thing. Your commission is going to be based on the contract you signed with them.

 

[LHmedicare]

Hi Stephanie - NO I never submitted any prior business with this one insurance carrier. I requested to be released back in September and have an email from a manager that they were terminating my contract. Now they are holding my contract with this one carrier hostage. I happen to be getting carrier direct leads from this insurance carrier that my new FMO set up - but I have to submit business under the old FMO and get paid half as less when they are not providing any of the leads. Its criminal. I filed a complaint but have not heard anything. I sent emails to this FMO and now they are not responding. Its so fustrating.

 

[StephanieCJ]

Reach out to the new FMO and/or a broker manager at the carrier.

 

[LHmedicare]

The new FMO can not do anything unless I have a release and the insurance carrier does not get involved with release disputes.

 

[LHmedicare]

I can not find any specific laws regarding this either.

 

[StephanieCJ]

Obviously the new FMO isn’t that concerned about getting paid in the leads they set up for you, because I have had several FMOs offer to help with contract release issues from other FMOs. There are some instances in which their hands are tied, but not all. My boss went through an FMO fighting her on release, and the broker manager from the company helped her with the release. Not sure what to tell you otherwise.

 

[Newby]

Hi Stephanie - NO I never submitted any prior business with this one insurance carrier. I requested to be released back in September and have an email from a manager that they were terminating my contract. Now they are holding my contract with this one carrier hostage. I happen to be getting carrier direct leads from this insurance carrier that my new FMO set up - but I have to submit business under the old FMO and get paid half as less when they are not providing any of the leads. Its criminal. I filed a complaint but have not heard anything. I sent emails to this FMO and now they are not responding. Its so fustrating.

I can tell you that you are NOT ever going to get released if you are now writing business through them. Never, never, never.

YOU made the mistake of signing up with a half-commission Upline. YOU did zero due diligence. It happens every day. They are taking advantage of greenhorns but smart greenhorns don’t sign up without researching first. But agencies that pay really low commissions DO NOT RELEASE. That is how they operate. If they did release, every agent they have would leave as soon as they wake up.

Here is what YOU must do. YOU must cancel the contract. Sell the other companies that you new FMO has for you to sell. Sit out this season on the company that is tied up. Next year you can pick it up again through the new FMO.

Either stuff happens to you, or you happen to stuff. (I think that’s a Dave Ramsey saying.) Take charge. Just because you got screwed doesn’t mean you need to screw over your new (and I assume fair) FMO. And you are screwing him over every time you accept HIS leads and sell it away from his companies. No excuse for it.

Have you been exploited? Probably. But you can react like a victim. Or you can react like a winner. Learn from YOUR mistake. You have a tiny setback that you can easily recover from. No one can really hold you back in this business. You just have to move forward.

 

[LHmedicare]

My old upline said they would release me after AEP - but yes they are sucking in all the commissions - I am loosing out big time. Yes so I will loose out this AEP but do not worry I will make sure all agents in that company are aware of the low commissions and they do not even follow CMS regulated commissions. I have a charge back of $1k but they have cheated me over $4k in 2018 and 2019 so far its over $2500 difference in commissions. UNITED INSURANCE GROUP AGENCY INC out of Michigan - stay away from this company.

 

[StephanieCJ]

I hate to break it to you, but they didn’t cheat you out of anything. The CMS guidelines are for max commissions, not minimum. They offered you a contract, and you took it. Take it as a lesson learned and don’t let it happen to you again. Newby is completely correct in his assessment of the situation. It happens a lot to new agents. It will continue to happen a lot to new agents. If not this company, then another. I hate it happened to you, but at least you know what mistakes not to make in the future.