Pdp $$

[axeman462]

All right.

I will speak for myself as a non-agent forum member.

I think the graph you posted says the new MAPD business written by lots of agents each year exceeds 50% of their new and renewal business written that year by some number noticeably over 1%.

I am not a math expert, so maybe you have math that proves otherwise.

all the article proves is that MAPD is not 60% of the market.

The question at hand is why the views on PDP (servicing the PDP specifically) has changed.

The reason, is because of inflation. IF PDP commissions go to Zero across the board, (which is unlikely), many agents wont be able to afford to service the clients for free.

This was not true several years ago.
Why? Because of inflation. The cost of running a business, and living has gone up. #BidenFlation

as @Midlevel mentioned in post #22 "Remember insurance agents work 100% on commission. We don't have a salary and a chance to make extra money if we sell something. It is our livelihood and believe it or not we do have expenses like rent, office supplies, gas, some have assistants, etc."

The market share of MAPD doesn't change that. The discussion of that is just a red herring.

The cost of running a business and the cost of living is what changed.

If agents lose the commissions from PDP, they will have to put their efforts elsewhere to create more income. Such as, acquiring new customers.

Many agents, only sell the OM side of the business, so switching to MAPD is not an option. Those agents will have to sacrifice service to PDP and focus on acquiring new medsupp business, or be forced to lose income, or be forced to add a line of business to compensate for the loss, ie: MAPD, LI, DVH etc..

 

[Dave G]

If PDP commissions go to zero, does that mean no more Scopes needed and no need to record phone calls, since there is no "sale" taking place?

Can agents then go fee-based on PDP? If no commission, then no conflict with a fee as I see it. Agent time is valuable and we deserve to be paid for our work.

 

[axeman462]

If PDP commissions go to zero, does that mean no more Scopes needed and no need to record phone calls, since there is no "sale" taking place?

Can agents then go fee-based on PDP? If no commission, then no conflict with a fee as I see it. Agent time is valuable and we deserve to be paid for our work.

Without looking up the regulations, I'm like 90% sure that any kind of consulting fees related to Medicare is illegal for licensed insurance agents.

As for recording phone calls, I would expect them to remain

 

[GoPokes]

If PDP commissions go to zero, does that mean no more Scopes needed and no need to record phone calls, since there is no "sale" taking place?

Can agents then go fee-based on PDP? If no commission, then no conflict with a fee as I see it. Agent time is valuable and we deserve to be paid for our work.

I have been thinking about that, the fee based approach, it may have to be an option. I think we are getting too far ahead of ourselves, we will have to wait it out.

There is still liability if you enroll them. The problem is, if you enroll them, and there is an issue, they want/expect you to solve it, but if you're not the AOR you have limited access.

It's interesting to note, how the local area agency on aging (and other volunteers) can enroll people, and when they've made a mistake, there is no liability blowback. Ive seen people end up with the wrong plan because they met with a well intentioned volunteer.

 

[Dave G]

Maybe time to sell my entire book and go all fee-based. One large consulting agency I found online provides "Personalized Medicare Consulting" for $599 for an Individual or $1,098 for a Couple. For those who "don't understand the Medicare coverage they have," you can also enjoy a review for the same fee. Or if you simply need help selecting a plan, that can be yours for just $299. This organization says they don't sell insurance plans....fee-based consulting, only.

Agent expertise is a very valuable skill set, despite what CMS may think. To me, a PDP consultation + plan selection is worth at least $100 minus need for an SOA or recorded call. I'd require the client sign a consultation agreement with all necessary disclaimers protecting me. Then Venmo me!

 

[Yagents]

If increase not govt funded, you could see many $0 pdp commish plans for 2025.

Then, govt will be late to the party and mandate commish in 2026. Or, allow agents to charge fees if not paid a commish.

Just like what happened in ACA.

To get rid of commission problems, fees are the future, it will just take time. Yagents? Because health insurance is confusing. Low income will be calling 1 800

Did somebody say fees are the future?

 

[Chazm]

As for recording phone calls, I would expect them to remain

If commissions go to zero, you would not need an SOA because you aren't taking the app. You'll only be asked to provide an SOA in that situation.

 

[axeman462]

If commissions go to zero, you would not need an SOA because you aren't taking the app. You'll only be asked to provide an SOA in that situation.

Recording phone calls and SOA is not the same thing

 

[Chazm]

Recording phone calls and SOA is not the same thing

Whoops. For some reason I read SOA. You definitely won't have to record the phone call. You only sold a med Supp. No need to record.

 

[axeman462]

Whoops. For some reason I read SOA. You definitely won't have to record the phone call. You only sold a med Supp. No need to record.

you're probably right, but I wouldn't put it past this government to continue putting onerous and needless regulations on the agent.

That being said, I still don't expect zero commissions across the board for PDP, so the conversation is at best speculation, and mostly pointless.