Production Requirements for Comp +, Trips, etc - Med Supp, MAPD, PDP

[sshafran]

A few different questions here...

1. I know some carriers (and uplines) give a higher comp level when an agent can prove higher production. (a) I'm assuming that they only factor "new business written in the year" and not an agent's entire book of business, correct? (b) Assuming an agent writes 200 new med supp policies but they are spread among 5 carriers (40 each) rather than one carrier (200), does that matter? i.e., does that hurt the agent in his/her ability to get a higher comp.

2. When discussing production, how is annualized premium figured out in the medicare realm? I'm assuming that med supp is pretty simple - $100/mo policy = $1200 premium. But, what about when a client gets a 5% discount? Should the agent only count $1,140 towards his "annualized premium that he brings to the table?"

3. Similar to 2 - using the same example - do the carrier trips count actual premium when there is a discount ($1,140) or full premium pre-discount ($1,200).

4. Final question - for MAPD, especially $0 premium, how is that factored? It takes just as much time/skill to write a T65 MAPD as it does to write a T65 Med Supp - so I would think it should count for something. When writing a $0 HMO, the annualized premium is... $0. Similarly, for PDP - most premiums are pretty low but the comp is standardized, so for "premium you can generate" is there some sort of standard amount allotted for PDP's and MAPD's?

Thanks, everyone!

 

[Todd King]

A few different questions here...

1. I know some carriers (and uplines) give a higher comp level when an agent can prove higher production. (a) I'm assuming that they only factor "new business written in the year" and not an agent's entire book of business, correct? (b) Assuming an agent writes 200 new med supp policies but they are spread among 5 carriers (40 each) rather than one carrier (200), does that matter? i.e., does that hurt the agent in his/her ability to get a higher comp.

It is total Med Supp (in the case) production over the past 12 months.

2. When discussing production, how is annualized premium figured out in the medicare realm? I'm assuming that med supp is pretty simple - $100/mo policy = $1200 premium. But, what about when a client gets a 5% discount? Should the agent only count $1,140 towards his "annualized premium that he brings to the table?"

It will be figured by actual premium, which in your example would be $1140.

3. Similar to 2 - using the same example - do the carrier trips count actual premium when there is a discount ($1,140) or full premium pre-discount ($1,200).

They will only count the discounted premium.
Also keep in mind that you will be 1099'd on any trips you win.

4. Final question - for MAPD, especially $0 premium, how is that factored? It takes just as much time/skill to write a T65 MAPD as it does to write a T65 Med Supp - so I would think it should count for something. When writing a $0 HMO, the annualized premium is... $0. Similarly, for PDP - most premiums are pretty low but the comp is standardized, so for "premium you can generate" is there some sort of standard amount allotted for PDP's and MAPD's?

Thanks, everyone!

MAPD and PDP don't count towards anything be trying to get a higher level contract for MAPD or PDP. There's no way to count any premium dollars for it.

 

[sshafran]

MAPD and PDP don't count towards anything be trying to get a higher level contract for MAPD or PDP. There's no way to count any premium dollars for it.

Thanks, Todd!

 

[Todd King]

Thanks, Todd!

I hope you read the whole thing. I replied to each question and it didn't show the whole thing.

 

[YouGotMyMoney]

MAPD and PDP don't count towards anything be trying to get a higher level contract for MAPD or PDP. There's no way to count any premium dollars for it.

So no bonuses, no trips - why would an Indy agent sell MAPD? LMAO

 

[Todd King]

So no bonuses, no trips - why would an Indy agent sell MAPD? LMAO

For the money of course. One can get rich doing this stuff! Haven't you heard?

 

[YouGotMyMoney]

LOL, yeah getting rich until you get one too many escalations and lose your appointment. I'd rather market Med Supps, $200 MOO bonus per UW case plus trips and high comp, see ya MA!

 

[GreenSky]

LOL, yeah getting rich until you get one too many escalations and lose your appointment. I'd rather market Med Supps, $200 MOO bonus per UW case plus trips and high comp, see ya MA!

I've switched over to Med Supps and did that years ago as my primary market. But I recall selling 100-200 MA plans a year that paid $500 with true-up.

Are trips more important than making sales?

Rick

 

[sshafran]

I hope you read the whole thing. I replied to each question and it didn't show the whole thing.

Yes, I did. I saw the red in the quote. Thanks again.

I just changed how I enter sales into my CRM a little bit - I added some new details by adding some new fields.

Now, when I sell Sue Jones a policy, I added a field - a product line drop box where I can choose Med Supp, MAPD, Dental/Vision, DVH, Life (FE), Life (Term), Life (WL), PDP, and Other.

I've also added a new field: Annualized Premium

My "old way" was OK and worked well as it tracked a lot of things but I primarily focused on "first year commission" for reports, but I think adding these two fields will help me run reports and sort them a bit easier.

Anyway, I think this will help. I'll be able to pull a report for the past 365 days (or whatever) and then sort it quickly by product type, carrier, calculate premium, count MAPD & PDP policies (since they count for $0), etc. It may even help when getting new contracts or shopping old ones for higher % deals.

 

[sshafran]

I've switched over to Med Supps and did that years ago as my primary market. But I recall selling 100-200 MA plans a year that paid $500 with true-up.

Are trips more important than making sales?

Rick

But you had to click through AHIP for an entire few hours to retain over $30-40,000 in renewal commissions from each year's work. And, you had to get scopes.

Clearly, you don't know that you are doing.