And soft money is the root of all the problems outlined in that report. Call centers can't cash flow without it, nor can the churn and burn agents. Though not a panacea eliminating soft money most be part of the solution.
New Senate report on agent commissions
- Thread starter MedicareWAA
- Start date
And soft money is the root of all the problems outlined in that report. Call centers can't cash flow without it, nor can the churn and burn agents. Though not a panacea eliminating soft money most be part of the solution.
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pay as earned will also get rid of a lot of the riff raff and fly by nights.
ACA is paid as earned and they have the same problems, if not to a worse degree. Last year I meet a T65 who had her ACA plan flipped every single month for 5-6 months straight until her Medicare started. As earned favors the well capitalized, not the most ethical.
Medicare bro
Guru
- 373
Agreed! Let agents get contracted directly with carriers. Eliminate call centers and FMOs.
What good would getting rid of the FMOs do for you, the agent?
there's a lot of ignorant finger pointing that goes on. FMOs aren't really the source of the problem [of churn and burn].
We have to ask, where is the motivation and what enables it?
- Decades long SEPs - without the ability to churn and burn you can't. Stop allowing mid year changes with never ending enrollment periods. End the SEPs, and get rid of OEP.
- Big up-front commissions - force all MA plans to pay As Earned. Yes, this will make it more difficult for newer agents, but they can (and arguably should) diversify with other products as well. $600+ upfront commissions are a real incentive to churn
- Force MA companies to focus on the core benefits - most of the churning comes from the Freebie Giveaways from the MA carriers. Why the H-E Double Hockey Sticks are my customers calling me asking how to get their Health Insurance to pay their Utility bills!?!? Focus on the core benefits, get rid of the noise, and there will be less reasons/incentive for churning
- Actually enforce the laws - There are already plenty of laws and regulations in place that is supposed to prevent cold calling for certain Medicare products. They are obviously not enforced. A few high profile crackdowns with some big penalties should send a clear message to the community. Nobody currently believes there will ever be any recourse.
Medicare bro
Guru
- 373
I'm sorry to answer a question with a question, but what is the amount of override you get when an agent submits and application under you?
BALDELMO
Expert
- 92
I hear.......Crickets
Fmo's aren't the source of the problem ? lol lol lol. When your making $250-$300 override per app and soft money ( marketing , Bonus's, vol payment etc of up to $400 plus ) I'd sure as hell say thats the issue . You got massive incentive to field an army of call center agents to flip everything . Take that $600 plus today away and make it like $150 total an app and flipping will be cut 80%
No where near what you and others might think. For some reason agents seem to think the IMOs/FMOs are making the money they would get, which is just not true. Getting rid of FMOs would make your job harder without increasing your commissions.
I am thoroughly convinced that agents have no clue all of the things that FMOs do...until you become one! I've been on both sides. I can see it from both sides. Most can't or won't.
