You're exactly right John. As poor a job as they do training their reps on their individual health plans, it's scary to think what will be happening out there with the MA plan. They've entered the market. Not with much of a splash though. According to the CMS report, they've enrolled 84 members. Of course, I don't know how up to date that information is, but they have definitely entered the market.
Mega FYI
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You're exactly right John. As poor a job as they do training their reps on their individual health plans, it's scary to think what will be happening out there with the MA plan. They've entered the market. Not with much of a splash though. According to the CMS report, they've enrolled 84 members. Of course, I don't know how up to date that information is, but they have definitely entered the market.
- 14,809
This could also be a situation where Mega ruins it for others. If they really try to grow their MA division and start generating complaints CMS could say "Ok, enough's enough" and start implementing all these new rules, verficiation and forms to sign.
That happened with the B to B gas/electric deregulation business. I was a regional manager for TG&E from 1997 through 2001 - we were in 7 states signing people up door to door. My job was to open offices, train everyone then go to another state.
We were doing fine then everyone started getting into the business and we grew too fast. All of sudden one day the public utility commissions started requiring more verification and what put almost everyone out of business literally overnight was phone verifications.
People who were enrolled now had to call into an 800 number and listen to a long message that explained basically everything - including their choices AND prompted them NOT to sign anything if they had any questions. Done, we were all out of business.
CMS could easily pull that. They could require all seniors to call into a central number and listen to a long daunting message about all of their options, then they have to voice verify that they agree to everything.
That happened with the B to B gas/electric deregulation business. I was a regional manager for TG&E from 1997 through 2001 - we were in 7 states signing people up door to door. My job was to open offices, train everyone then go to another state.
We were doing fine then everyone started getting into the business and we grew too fast. All of sudden one day the public utility commissions started requiring more verification and what put almost everyone out of business literally overnight was phone verifications.
People who were enrolled now had to call into an 800 number and listen to a long message that explained basically everything - including their choices AND prompted them NOT to sign anything if they had any questions. Done, we were all out of business.
CMS could easily pull that. They could require all seniors to call into a central number and listen to a long daunting message about all of their options, then they have to voice verify that they agree to everything.
John,
That is already happening. There were several changes put in place for the 2008 enrollment year. A verification call has to be made to the Medicare Beneficiary by the carrier (or some third party they hire to do it). Some carriers are requiring this to be done at the time of enrollment and others are requiring it after the sale (usually 1 or 2 weeks after the fact).
The only thing Mega could do at this point is likely have their contract canceled. Assuming the problems are isolated to them of course. All the changes that came for the 2008 enrollment season were mainly due to unscrupulous reps out there making a quick buck last year. Many people were enrolled in a plan without their knowledge. Some reps were claiming to be from Medicare. The list probably goes on and on. You get the picture.
If the Mega reps sell the MA plans like they do the individual health plans, they won't be in the market long.
Actually, CMS pulled medicare advertising and promotion until just after Thanksgiving 2007.
HM was forced to eliminate all high complaint agents from marketing MA products. For example, in New England, there was dozens and dozens of agents who were not allowed to market or enroll. A good % of those not allowed were Districts.
I think healthmarkets realizes the value of MA and will go to great lengths to avoid fucking it up. At a manager's meeting in Dallas, they even stated that the MA product can't be sold the same way that the health plans are sold.
HM was forced to eliminate all high complaint agents from marketing MA products. For example, in New England, there was dozens and dozens of agents who were not allowed to market or enroll. A good % of those not allowed were Districts.
I think healthmarkets realizes the value of MA and will go to great lengths to avoid fucking it up. At a manager's meeting in Dallas, they even stated that the MA product can't be sold the same way that the health plans are sold.
HaHa, that would have been an interesting meeting.
"Alright maggots, listen up. You cannot do any of the crap (wink) you normally do. We'll potentially lose this market and we won't be able to go public, which means all the stock you have now won't even buy you a roll of toilet paper. Now get out there and remember what I said."
- 14,809
I understand through an informant of mine that they're targeting the sales tactics of agents who have "unusual sales production" - meaning, Healthmarkets really wants to know how those "50K a week" agents are selling.
If you read the PDF file Healthmarkets is going to do a "secret shoppers" tactic and have Healthmarket employees pose as clients to ascertain the sales methods of certain agents.
Also, manager's paid (on all tiers) are now going to be tied to complaint ratios - not production. So if your division or district has "X" number of complaints then you're pay goes down.
If you read the PDF file Healthmarkets is going to do a "secret shoppers" tactic and have Healthmarket employees pose as clients to ascertain the sales methods of certain agents.
Also, manager's paid (on all tiers) are now going to be tied to complaint ratios - not production. So if your division or district has "X" number of complaints then you're pay goes down.
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Their original marketing strategy for MA was to get together large groups of seniors and do a powerpoint presentation that would hopefully answer any and all questions. This was very quickly was snuffed out due to combination CMS secret shoppers and poor agent training on the product. 
Gee, who would of thought that was going to happen?
Gee, who would of thought that was going to happen?- 14,809
Just the fact that Mega is still writing insurance after over 20 years tells me everything I need to know about this industry.
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John, seriously? Everything?
If I've told you once, I've told you 1,000 times not to exaggerate!
Rick
Are you speaking specifically of HealthMarkets? Because that is not the case with other carriers. CMS did end the Continuous Open Enrollment in the summer for PFFS plans. However, advertising began in October of 2007 for the AEP which started on 11/15/07.
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