About 6 points from writing agent to top of the hierarchy. Sometimes a bit more, sometimes a bit less, but the spread isn't as big as MA (and the dollars aren't as large either).
Cancer, hospital, home care … those are totally different and I mention them because many supplement carriers also have those products. 20+ points is common, and 30+ isn't unusual. Can't speak to final expense.
About 6 points from writing agent to top of the hierarchy. Sometimes a bit more, sometimes a bit less, but the spread isn't as big as MA (and the dollars aren't as large either).
Cancer, hospital, home care … those are totally different and I mention them because many supplement carriers also have those products. 20+ points is common, and 30+ isn't unusual. Can't speak to final expense.
So I am under a producer who is under an FMO. He has access to higher overrides so him and I split whatever it is, for example UHC MAPD is typically about $150. He is saying the overrides for supplement aren't even worth doing that. Is he right?
So I am under a producer who is under an FMO. He has access to higher overrides so him and I split whatever it is, for example UHC MAPD is typically about $150. He is saying the overrides for supplement aren't even worth doing that. Is he right?
Do the math. If he's a top tier FMO (likely not based on the MAPD figure you gave), there might be a 6 point spread. Since he likely isn't the top tier FMO, he may have a 2-4 point spread. A $2,000 premium (and that's high) means he's getting $40 to $80 a year for 6 years and then not much of anything.
Do the math. If he's a top tier FMO (likely not based on the MAPD figure you gave), there might be a 6 point spread. Since he likely isn't the top tier FMO, he may have a 2-4 point spread. A $2,000 premium (and that's high) means he's getting $40 to $80 a year for 6 years and then not much of anything.
He is licensed under an FMO, but he's not an FMO. Instead of street level commission he gets a bump or 2 ahead. So what he is saying is that his override for me writing a supp under him is like $2. Which I'm not sure if that is true.
He is licensed under an FMO, but he's not an FMO. Instead of street level commission he gets a bump or 2 ahead. So what he is saying is that his override for me writing a supp under him is like $2. Which I'm not sure if that is true.
Again, do the math. If he's 1% higher than you, on $150 per month premium, he gets $1.50 per month. If he's two points higher than you, he gets $3 per month.
It really depends on the carrier. 6 points is probably correct for the bigger guys for yr 1. We don't get that much. It also follows the commission tiers so less for yrs 2-6, 7-10, 11+, etc.
Depending on state and carrier, some pay flat amounts. UHC in NC actually pay us flat dollar amount OR's. It's still not much but it's flat.
If someone says it's not worth it, ask why they are bothering to contract with Med Supp carriers. Volume is what matters.
It really depends on the carrier. 6 points is probably correct for the bigger guys for yr 1. We don't get that much. It also follows the commission tiers so less for yrs 2-6, 7-10, 11+, etc.
Depending on state and carrier, some pay flat amounts. UHC in NC actually pay us flat dollar amount OR's. It's still not much but it's flat.
If someone says it's not worth it, ask why they are bothering to contract with Med Supp carriers. Volume is what matters.
I don't think anyone is saying Medigap doesn't matter. Just that the overrides aren't enormous and so it's probably not worth an agent spwnding a ton of time negotiating them. There would be a higher return on your time by focusing on bumping ancillary, Advantage, etc.
An agent who writes 100 supplements each year might be able to get an extra 2 points (optimistically) but they might be able to get 3x the bump on other products, either in points or other dollars. Thats certainly true for small agencies writing 500-1,000 supplements each year.
As an aside, I'm always surprised how few agents appreciate the money to be made in underwritten Medigap. If you can find the prospects and get good at underwriting, you can make a killing on the bonuses. And quality of book can be used as leverage for even more money.
