Override & Co-ops

[NewHealthGuy]

I have an agency with 4 licensed LOA's (downlines) who are paid hourly wages and some commissions for their sales. We submit between 65-90 applications each month and we receive street level commissions for Medicare Advantage. I inhouse all of my marketing. Our current override structure is this; Humana $100 no proration and paid by upline, UHC $75 subject to proration and paid direct from carrier, Aetna $125 subject to proration and paid direct from carrier, WellCare $100 no proration paid by upline, Cigna $100 no proration and paid by upline. Are these competitive overrides?

Co-ops are distrusted only during AEP and I am getting about $50 per head for expected applications. When it comes to co-ops I am a novice, and am curious to see if anyone is having a better experience?

 

[Jim Wright]

Marketing dollar Cost of Acquisition is typically calculated at $100 per app. It's pretty standard for an FMO to give $50 per app. I would say the overrides are pretty competitive. The lower tiers of FMO overrides aren't as high as those so you could be making more than the smaller FMO's out there.

All that said, if someone was trying to win your business from that FMO, they could offer you more but usually just first year. Depends on what you can negotiate.

 

[MedicareWAA]

Marketing dollar Cost of Acquisition is typically calculated at $100 per app. It's pretty standard for an FMO to give $50 per app. I would say the overrides are pretty competitive. The lower tiers of FMO overrides aren't as high as those so you could be making more than the smaller FMO's out there.

All that said, if someone was trying to win your business from that FMO, they could offer you more but usually just first year. Depends on what you can negotiate.

If you blend everything together, all levels, there’s about $500 per AEP new to carrier MA app on table in both overrides and soft money. Some carriers more like 400, some up to 700. That’s true whether new to Medicare or a switcher. In other words a whole lot of money. So take your current support from upline vs about $500 and that’s your piece of the pie, assuming you’re writing carrier mix similar to national share.

Crazy world where uplines collect 2x what ordinary writing agents get on a new switcher app. You’d think it would be the other way around. That explains why lots of small agents aren’t so happy right now about new comp being walked back.

Way, way less upline money on PDP and sup.

Walter

 

[hometownmediadv]

$100 override seems decent! Are there any offices getting less than $100?? Any getting more??? Sounds like your FMO could do a little better on coop for you.

 

[medicare37]

Do you get paid HRAs directly from the carrier?

 

[DonP]

If you blend everything together, all levels, there’s about $500 per AEP new to carrier MA app on table in both overrides and soft money. Some carriers more like 400, some up to 700. That’s true whether new to Medicare or a switcher. In other words a whole lot of money. So take your current support from upline vs about $500 and that’s your piece of the pie, assuming you’re writing carrier mix similar to national share.

Crazy world where uplines collect 2x what ordinary writing agents get on a new switcher app. You’d think it would be the other way around. That explains why lots of small agents aren’t so happy right now about new comp being walked back.

Way, way less upline money on PDP and sup.

Walter

Depends . Some carriers like United pay less United to United . My Humana regional told me they cut overrides on Humana to Humana . Fmo’s make about $250-$275 admin override and $200 ish marketing money per app . $12.50 a month override on renewals . We’re talking top of hierarchy fmo . Some small regionals buying business giving more . See the whole thing carriers like Cigna , Anthem , Humana overrides paid by fmo to agency . You can negotiate what you want . 60-90 apps a month for 5 guys is ok vol . Op never said if he’s getting overrides on renewals . No carrier has come out and said a word about overrides and what they’ll be nor about marketing money .I find it hard to believe with massive bent tightening here in 2025 all that’s not cut some.

 

[MedicareWAA]

Fmo’s make about $250-$275 admin override and $200 ish marketing money per app . $12.50 a month override on renewals . We’re talking top of hierarchy fmo

Just because that’s what you were told doesn’t mean it’s correct. Let’s just say there’s a lot of money being thrown around. Some large carriers are more like $600+ to top producers.