Medicare's New Rules

[MedSuppPro]

The carriers not CMS will track the six year cycle because they want to be compliant and because it is their money !

As this story unfolds... It will kill MA sales. And if your an MedSupp only agent, take note, your next!

Not only do we spend boat loads of time servicing these people and helping them through the Medicare maze. We risk our reputation by having to explain to these good people that "I'm sorry after 6 or less years I will not be able to assist you with your health insurance needs." We should require Medicare employees to agree to a 6 years or less contract. How asinine.

These are not Medicare Supplements. They renew annually. None of the plans I sold in 2003 are still in existence. By definition these plans change and the consumer is in great need for our guidance and customer services. This is especially true as our clients age. How can anyone with a straight face tell us that 6 years or less is good for the consumer and will cut down on unethical behavior. Who decided 6 years or less was the majic answer? Give me a break!

From my understanding, CMS will start tracking the agent of record in 2010. CMS claims that they will be able to track who the original agent was and they will be able to report to the carrier that an agent is in need of a wacking !

CMS needs a good wacking.

"They know nothing"​

 

[GreenSky]

Here is my best guess as to compensation.

Renewals - about $100-150 per year
First Year - obviously $200-300
My "real" guess: $120/240

In speaking with a higher up at an insurance company I was told that initial commisisons can be paid up front but earned on a monthly basis.

Rick

 

[midwestbroker]

CMS cannot track their own apps much less who wrote what. I see this as a BIG mess in 2010.

Having worked the MA market for a little bit now, and seeing what is said and what happens, I am not too worried.

I have seen people make multiple changes in OEP and the apps have gone through. Humana got fined for enrollment of dead people in Oklahoma.

The more rules Medicare throws up the more chaos it creates. However, since CMS is a government outfit, efficiency and common sense is not required.

 

[allhealthandlife]

Maybe CMS will allow carriers to appear generous and pay say 800.00 which is 266.00 first year and 133.00 renewal for five years.

So now because of less incentive for other agents to poach your customers the business may stay on the books longer but as the years go by and the benefits are cut we get to field all the calls from disgruntled members.

CMS is kidding themselves if they think MA plans don't need to be sold.It seems like a model doomed to fail.

 

[midwestbroker]

One of the main problems that I see is that there are so many people who think seniors are these frail, incompetent people who cannot make any decisions.

The fact of the matter is, the majority of seniors are very intelligent, well seasoned individuals that do not need (or want) any more government regulation to inhibit their lives. Now, there is that minority that do need help and have been taken by scrupulous agents, but why penalize the who market for the ignorance of but a few?

 

[Frank Stastny]

One of the main problems that I see is that there are so many people who think seniors are these frail, incompetent people who cannot make any decisions.

The fact of the matter is, the majority of seniors are very intelligent, well seasoned individuals that do not need (or want) any more government regulation to inhibit their lives. Now, there is that minority that do need help and have been taken by scrupulous agents, but why penalize the who market for the ignorance of but a few?

Truer words were never spoken.

 

[MedSuppPro]

However, since CMS is a government outfit, efficiency and common sense is not required.

Most of CMS activities are through contracted entities. Claims and 1-800Medicare are examples of sub-contracted entities. And we agents are sub-contracted and certified entities. However, we have no say in the contract. It is a take it or leave it proposition. The FMO's did nothing!

And so we have good meaning people at CMS who have education and lots of experience running the CMS business. These administrators are now looking at a new job description that they have had no experience with. They now have to regulate sales activities and develope a set of rules to regulate this new responsibility. This is something that has taken state's years and years to figure out.

CMS has created a new sub-contractor definition called "RENT-A-AGENT". The unitended consequence of their newly created rent-a-agent will be to harm the senior client whom needs our services and advise. This is not a Win-Win solution. And one could argue that their rent-a-agent will ultimately help the insurance carrier's bottom line! CMS should have gone with a levelized commissions model like Anthem has offered for years. Levelizing commissions would have eliminated the quick buck agent and would have meet the requirement set by congress. Instead CMS went overboard on this one.

Should we RENTA-AGENT's fully disclose our limited relationship to perspective clients?

"Mr. and Mrs. Jones, I'm required to disclose that I am compensted by this plan... A MA / PDP works differently than a Medicare supplement plan... Due to CMS rules, I will be prohibited from servicing your future MA / PDP needs beyond {insert 6 or less} years." After {insert 6 or less} years you may go to any agent willing to accept the terms and conditions set by CMS and you will then need to switch plans in order to have a local agent to assit you with your health insurance needs. Or you may call the carrier direct. These home office people are compensated differently then an independent agent and may on a case by case basis accept the terms and condition of an independent agent and agree to service your needs and or advise you of your insurance choices. If at that point you unable to get service and advice that you feel you need and have come to appreciate, you may call 1-800Medicare.

I seriously believe we will need to disclose our Rent-A-Agent relationship to our clients. I don't want to assume the liability in outlying years. The client needs to know this upfront. Isn't this the ethical thing to do? What would AARP say?​

 

[Googly Moogly]

Don't walk, RUN away as fast as you can...

:bump:

Ditto!!!

 

[midwestbroker]

Another FYI

I spoke with the local director for Coventry. They are working on a letter that agents can present to beneficiaries that will allow the agent to talk about other products (waiving the 48 hour cool down period). They do not seem too optimistic about it.

Humana said that they are going to inform prospects on the phone that MA and other products will be discussed. This, they say, will get them around the 48 hour window. I do not see how it will but they seem to think so.

 

[Joe Moore]

My concern:

IF agents have no incentive to go after the coverage of an inferior plan, the companies will have no incentive to keep their plans superior to competitors.

Who suffers? The Consumers!

While you are containing the actions of the agents, why not standardize the plans, so consumers can compare an apple to an apple?