New CMS Proposed Requirements

May 9, 2008

  1. GreenSky
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    GreenSky Guru

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    Here's part of an article from the LA Times. Entire link below.

    The rules proposed Thursday would ban door-to-door peddling of plans and cold-calling beneficiaries on the telephone. Meetings with a sales agent would have to be initiated by the Medicare recipient and could only cover the specific subject the recipient wanted to discuss. Sales agents would be prohibited from using face-to-face meetings to sell another product, such as life insurance.​

    Insurance companies would be required to change the way they pay commissions to diminish financial incentives for agents to sell plans that paid higher commissions. Companies would also be required to use state-licensed agents.​

    Kerry Weems, acting administrator of the Centers for Medicare and Medicaid Services, said the new rules would help weed out unscrupulous sales agents andprovide greater peace of mind for seniors.​

    Until now, Medicare has responded to problems by issuing directives to the insurance companies, and threatening to kick some out of the program. Regulations, which carry the force of federal law, signal a growing sense of urgency. They would take effect after a period for public comment.​


    Rick​
     
  2. Crabcake Johnny
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    Crabcake Johnny Guru

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    why do I sell health?
     
  3. Bob_The_Insurance_Guy
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    Bob_The_Insurance_Guy Guru

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    Ah, see, that's why I don't buy leads.

    100% of the Medicare business I write is referral from my parents, my business associates, and current clients.

    I think this article is great, and I hope they catch every unscrupulous agent out there. It doesn't affect me at all.

    Thanks for posting it.:yes:
     
  4. GreenSky
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    GreenSky Guru

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    I was planning on telemarketing for MA plans but I guess I'll rethink it.

    The real issue I have is if CMS believes that MA plans can be a benefit for people, why are they making it damn near impossible to "share the joy?"

    I do agree with the issue on commissions. I have been vocal about paying commissions on a monthly basis which will get rid of all the quick buck artists and leave this to the professionals.

    Rick
     
  5. Erazz
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    Erazz New Member

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    If they send a reply card than you can contact them, is this correct?
     
    Erazz, May 9, 2008
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  6. GreenSky
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    Hell, who knows? I think you can only drive by with a bullhorn.

    I wonder if you send a generic mailing can you call them about a specific product. And if you get to their house and a neighbor is there who has a different plan, can you compare? In fact, can you even mention their existing plan to do a comparison?

    CMS sucks and they simply exist to continue their own jobs.

    Rick
     
  7. GreenSky
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    Just how many parents do you have that can keep you in the Medicare business?:biggrin:

    Rick
     
  8. Guest
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    I disagree. This industry sector has brought the added regulations on themselves by hiring low-life agents just out for a quick buck and who had the "gifts of persuasion" to convince gullible seniors to buy plans not in their best interest, selling them high commission PFFS MA plans, and churning, churning, churning.

    The entire MA industry is a rat's nest and needs to be cleaned. Agents who specialize in selling MA (and perhaps annuities) to seniors should be forced to pass a complex Federal exam (we can call it a Series 99?) and perhaps be federally licensed. I might even suggest that they need to have a four-year degree from an accredited college. A background and credit check might not be a bad idea either.

    Al
     
    Guest, May 9, 2008
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  9. Crabcake Johnny
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    I went for MA training in Baltimore last year. I still can't get the stink off when I shower after that presentation. CMS has their work cut out for them when unethical agencies looking for fat overrides teach agents to lie, cheat and con. Not like it's exclusive to the senior market - exists in insurance in general
     
  10. Dave020
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    Dave020 Super Moderator Moderator

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    That, right there, is the key answer. Stop paying $400 or more per approved application on zero premium products and most of the riff raff will exit the market.
     
    Dave020, May 9, 2008
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