New CMS Proposed Requirements

[Frank Stastny]

This is just the next step to eliminate insurance agents from the equation.

Agents acting as a group, nation wide, could put a screeching halt to this kind of crap. Where do you think CMS would be with their "wonderful" plan (PFFS) to cut Medicare costs if agents refused to sell it? It is currently costing more than traditional Medicare and agents are selling it like there is no tomorrow.

I do agree with one aspect of what they say. The commissions are way too high. All that has accomplished is to flood the market with agents who know very little about Medicare and are only after the high commissions with total disregard for how it will preform for the future client.

Make the commission comparative to Med Supp commissions and only pay them "as earned". That will eliminate the problem. Honest, hard working agents who really care about their prospect will endorse that concept. Those who don't should be selling used cars!

(Yes, I understand that the above statement does not apply to all agents. Just the ones that have caused CMS to go off the deep end.)

 

[Bob_The_Insurance_Guy]

My parents have lived here for over 50 yrs and know quite a few folks.

 

[scottfree]

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.​

Find the article here Medicare targets marketing abuses with rules proposal - Los Angeles Times​

Rick​

I read this article thought who was the reporter and who at CMS did they talk to..

First, from day one you weren't supposed to go door to door cold calling for these plans.

Second, You were always supposed to set another appointment to talk about other products.

So if this is part of CMS clamping down, its a smoke screen just to put out a press release to show they are doing something.

As far as commissions, I'm all for level commisions and renewals. I sell plans that best fit my clients and the only reason to switch someone is if the plan goes south. $250 first year and renewal would be just fine with me.

Another thing CMS could do is extend the selling season or just make it all year long. Trying to see clients during the holidays stinks, not to mention weather issues in the winter. I am exhausted working 10 to 16 hour days from November to the end of the year, then working maybe 10 to 12 hours until 4/1 to try and see as many people as I can. I am stilll getting calls from people that still want to switch. I aaready have a couple dozen clints that are on my priority list for this fall. 5 months it starts all over again.

I am seeing a lot of the low life agents dropping out already and if they actually have NEW CMS rules more of these guys will leave also. I have spent more time fixing BS they have caused this spring than ever before.

Scott

 

[myinsurebiz]

" First, from day one you weren't supposed to go door to door cold calling for these plans. Second, You were always supposed to set another appointment to talk about other products. "

Basically what they are implying at this point is that the client needs to initiate the contact first - not be called from a purchased lead - but, the client call "IN" themselves to inquire.

I'm thinking of moving into Health, Life and Final Expense if I could ever get my systems to work . . .

Tom

 

[Mr. Bill]

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

Wow, that's a bit high-fallutin! Seriously, have you hired a recent college graduate lately? I've interviewed dozens and dozens, and while I have long held the belief that today's college degree is the equivalent of yesterday's high school diploma, it has proven true over and over and over again.

Background checks? You can't be serious. I've been the "background check" to a defense department service provider employee (private corporation) and guess what? I wasn't even contacted. References? Your mom's best friend just doesn't cut it. Credit check? Why? Certainly there are despicable people with great credit and wonderful people with bad credit. How do you think my client's friend felt when all of a sudden, her husband left her for another woman and suddenly she started getting bills for a 2nd on her home that she didn't know she had. Turns out her husband got a loan with the girlfriend posing as the wife, and then ran off with the money. Guess who's on the hook for it? The bank didn't admit any wrongdoing and the money was gone.

I'm not saying there shouldn't be improvements, but I don't think the government at ANY level is able to produce tangible results. If the government felt responsible for appropriate delivery of healthcare sales, they would make the salespeople government employees. Whatcha think about that?

 

[theinuranceguy]

Wow, that's a bit high-fallutin! Seriously, have you hired a recent college graduate lately? I've interviewed dozens and dozens, and while I have long held the belief that today's college degree is the equivalent of yesterday's high school diploma, it has proven true over and over and over again.

Background checks? You can't be serious. I've been the "background check" to a defense department service provider employee (private corporation) and guess what? I wasn't even contacted. References? Your mom's best friend just doesn't cut it. Credit check? Why? Certainly there are despicable people with great credit and wonderful people with bad credit. How do you think my client's friend felt when all of a sudden, her husband left her for another woman and suddenly she started getting bills for a 2nd on her home that she didn't know she had. Turns out her husband got a loan with the girlfriend posing as the wife, and then ran off with the money. Guess who's on the hook for it? The bank didn't admit any wrongdoing and the money was gone.

I'm not saying there shouldn't be improvements, but I don't think the government at ANY level is able to produce tangible results. If the government felt responsible for appropriate delivery of healthcare sales, they would make the salespeople government employees. Whatcha think about that?

Now Bill, You should know better than to disagree with Al...

I give it 6 more posts and Sam is gonna put this baby in the forum prison...

Any Bids?

 

[arnguy]

Al, I would prefer to call it "Series 69!"

 

[GreenSky]

Mr. Bill -

You're on thin ice when you disagree with Al. You will soon be called a bully and evil.

I've come full circle on this and finally believe Al is correct. Everything should be controlled by the government. Healthcare, Food Supply, Gasoline, Privacy, etc.

Big business is the cause of all our problems. Capitialism is bad I tell ya. Bad!

Rick

 

[Joe Insurance]

This thread is the reason I joined the forum. (First post!) This makes me, to be honest, a little nervous, since as a new guy / captive agent the cold calling is a big part of the job. The really big problem I see, is this will drive up marketing requirements for the insurance companies, since cold calling is out, in turn driving up insurance costs. At the same time we all know of those working for various firms who really, seriously, need to be run out of the business on a rail. Those are the ones who've polluted the water we swim in, and in turn, in the way this is shaping up, drive up costs for everyone in the insurance equation.

 

[retread]

Perhaps some of you noticed the comments from the article in the LA times brought to our attention by Greensky that are quoted from the President of the NAIC ... none other than our own Commish here in KS! Listen to her remarks..."There is no change to address the fundamental problem that states do not have sufficient regulatory authority to ensure proper enforcement in the marketing and sales of Medicare private plans."

There is a group of Medicare "Associates" just down the street from me. Their marketing tactic is to "sneak up on Seniors". I lie not! They take their lead card to the door and pretend to offer "New benefit information on Medicare." They claim if anyone challenges them, they are there to sell Med Sups... but they have none. They don't believe in them, and only push MA plans. I could go on, but I'm feeling ill again...

Sandy Praeger, where are you? Her point? She couldn't do anything about it anyway.