New for AEP 2011... Part D Referral Fee

[Focus LTC]

I understand that some part D companies are giving agents an opportunity to earn a $45 one time referral fee for recommending their plans to clients.

As I understand it, you give the client the 800 number and a referral "code" that is unique to you, they call, punch in the referral code, then H.O. enrolles them and you're done. You get paid the fee on April's commission cycle (they have to have the plan for at least 3 months).

It is NOT a commission, and there are no renewals. It does not matter if it is replacement or new enrollment, the fee is the same.

Certification and Scope of Appointment forms are NOT required. You do have to licensed and appointed with the carrier to get paid and to get your unique referral code.

I know that CVS/SilverScript is doing this for AEP 2011. Does anyone know of any other carrier participating???

 

[Bob_The_Insurance_Guy]

Not a bad deal. For those of us who now just tell them to go to medicare dot gov, this is a way to stay out of the picture and still get paid. I can't see a downside. It beats getting a 1.67 commission check 9 months down the road.

 

[Focus LTC]

Agents Looking for Medicare Part D Solutions for their clients will find a Fourth Option in 2011 as the Part D Referral takes shape « Ritter Insurance Marketing

Here is the link to ritter's site regarding the referral fee program. This looks like a great option for the Med Supp agent looking help his clients with part D without going through the minefield of CMS regulations... I think this will be a hot option this year.

 

[G.Gordon]

If that ONE plan is the best one for the client. Most of the time it won't be. We had a pretty wide spread of plans we suggested to clients. Yep, we didn't get paid for it, but it's a service to the client with benefits beyond that $20/plan pay check. I put on at least a couple dozen clients every AEP cause my current clients tell everyone how wonderful I am.

So, would you rather have a 50/50 chance that everything falls into place to get a $40 referral fee or would you build a base of folks around you that know you care about them?

What are all the things that have to go right for you to get that fee and they are all out of your control. 1. They have to call the plan. 2. They have to remember or get your code right. 3. They have to enroll in the plan in the first place. 4. Just calling don't get you paid. I'm going to guess that less than 25% of the people an agent refers to this program will end up getting you paid.

 

[ksigmtsu]

I'm going to leave a stack of the CVS branded cards inside a CVS store and just hope that it works out. If it makes money then great, if not who cares.

I think that's pretty well the way to address this new "feature" that companies are coming out with.

 

[DS4]

I forget how many Part D plans are available in California. It changes monthly because of all the hands that get slapped by CMS.
That being said, the out of pocket expenses senior would experience can vary. I have seen variances of up to $5k, $6k, etc. between the "best" option, and, the "worse" option. Unless you input the seniors meds through "Formulary Finder", you are doing them a disservice. One size doesn't fit all, just like condoms.

 

[Focus LTC]

I forget how many Part D plans are available in California. It changes monthly because of all the hands that get slapped by CMS.
That being said, the out of pocket expenses senior would experience can vary. I have seen variances of up to $5k, $6k, etc. between the "best" option, and, the "worse" option. Unless you input the seniors meds through "Formulary Finder", you are doing them a disservice. One size doesn't fit all, just like condoms.

I couldn't agree with you more. We did "Formulary Finder" last year and found that in MD anyway, 1 plan was the best value for over 80% of our customers.

That's why I asked if any other companies are doing the referral fee program. It would be nice to get paid everyonce in a while for doing the "formulary finder" and recommending a plan, AND on top of that not having to worry about SOA's new regs etc etc...

I can't imagine CVS being the only one that's going to do it. I guess time will tell...

 

[VaDwayne]

Not worth $45 to be involved with it. Just my opinion.....