Prorated True-Up commission payments??

[TLD24]

2017 NJ rates $276 or $553 trueup)
I’m still confused at how prorated commissions are paid out.
If I write a TRUE-UP application effective 10/1/17,
Would my initial pay be $69 ($23 x 3 months) and my TrueUp be $484 ($553 - $69)??
Would it start renewing 1/1/18??
HELP!!!

 

[bpenn9]

You should get $23 a month starting 10/01/2018.

 

[TLD24]

I was told all renewals now follow a calendar year (jan-dec), which means everything written during the 2017 calendar year would start renewing in 1/2018. But it seems like every agent has a different opinion on how this works

 

[bpenn9]

How would you get the full commission then in October then renewals in Jan? $553 represents new to Medicare 1st year commission.

 

[FRJ]

You should get $23 a month starting 10/01/2018.

no, he'd start receiving that for 1/1/2018. TLD24's assessment of how it works is correct.

 

[bpenn9]

SO he gets $553 in October and $23 starting Jan? He gets 12 month commission then starts getting paid renewals in 4th month for month 13?

 

[TLD24]

I was told thats the beauty of a true up!
If it was an MA to MA plan switch eff 10/1/17, i would only be paid $69 prorated pay, and renewals begining 1/1/18. But some seem to argue on a 10/1 eff true-up i would be paid $69 and only another $69 for the true-up amount. This is why I am so confused

 

[bpenn9]

Regardless of when/how they pay, you wouldn't get more than $553 in the first year, hence first year commission. Maybe that's what you were saying in your example and I just didn't read that right.

 

[Fisher]

SO he gets $553 in October and $23 starting Jan? He gets 12 month commission then starts getting paid renewals in 4th month for month 13?

You're getting hung up on the number of months. MAPD/PDP commissions are based on a calendar year - not how long the plan has been in place. A Medicare beneficiary new to MAPD pays full 1st-year commission regardless of if the effective date of coverage is 1/1 or 12/1. The renewal rate kicks in 1/1 of the following year.

It's wonky but wonderful.

 

[bpenn9]

That is wonky, haven't paid much attention. Virtually all of my MA business is done during AEP for 1/1 effectives, med supps the rest of the year. Just checked my Humana statements and looks to be the case.