New to Selling MAPD...commissions Question

[darkyvader]

Hello to everyone on the forum,

I am brand new to the insurance world and received my license for Health and Life in May. I have sold a few MAPD plans and have a question about the commissions. Have you guys heard of the commissions for say a MAPD plan decreasing through the year?

Case in point:
I was told by my company that commissions for sales are decreasing every month. For example if you sell a plan in January you get the full pizza, roughly 400+ bucks. If you sell late in the year, like in November, you get like lets say 50 bucks. "but in January you start getting paid residuals of 28 dollars per month for each sale you have made so sell sell sell".

I'm just making sure this is common to all you agents out there because nobody wants to get burned. Seems a little quirky but hey if its the game, then the game it is. Like most consumers out in the world, we can be leery or sales people....especially the higher ups, lol. No offense yal make the bucks....

Please forgive if I have posted in the wrong area, or if I have offended anyone.

Im just a simple guy in a complex industry but I'm no spring chicken...and I was born at night.


The Dark

 

[JimmyUt]

Hello to everyone on the forum,

I am brand new to the insurance world and received my license for Health and Life in May. I have sold a few MAPD plans and have a question about the commissions. Have you guys heard of the commissions for say a MAPD plan decreasing through the year?

Case in point:
I was told by my company that commissions for sales are decreasing every month. For example if you sell a plan in January you get the full pizza, roughly 400+ bucks. If you sell late in the year, like in November, you get like lets say 50 bucks. "but in January you start getting paid residuals of 28 dollars per month for each sale you have made so sell sell sell".

I'm just making sure this is common to all you agents out there because nobody wants to get burned. Seems a little quirky but hey if its the game, then the game it is. Like most consumers out in the world, we can be leery or sales people....especially the higher ups, lol. No offense yal make the bucks....

Please forgive if I have posted in the wrong area, or if I have offended anyone.

Im just a simple guy in a complex industry but I'm no spring chicken...and I was born at night.


The Dark

It depends on your contract, the company, and if they are new to medicare. If it is someone who is rolling from one plan to another, you usually get the base commission divided by 12 times the months they are on the plan. So if it is $20 a month, and they sign up for Oct 1st, you get $60. Some companies only pay as earned however. Too many moving parts

 

[djones745]

Like you I am relatively new at the business but after writing a couple hundred apps I've learned the following:

if your contracts with carrier pay the full $443/yr for 2017 then you get paid as follows:

- new to MA plans with no prior part D- full $443 regardless of enrollment month
- New to MA with previous part D- $443 prorated for months left in calendar year
- Switch from one MA plan to another- MA renewal amount ($221) prorated for months left in calendar year
-If CMS determines the insured has had Any form of prior MA plan then the prorated renewal amount is paid

Some carriers (like BCBS) pay renewal at one time (Feb for me) others companies like Humana pay monthly as earned (even though there may be no monthly payment due from Insured)

Hope this helps...

 

[GoPokes]

Yeah it sounds legit. Some companies pay that way, $440 ish if sold in Jan, but smaller if sold later in the year, and it renews at about $17/mo the next year. Sucks, but that's the way it is. CMS gives them the option to do it that way, or pay the full amount regardless of the month they enroll.