Just had lunch with a real estate friend of mine who has a "Top referrer" type dinner. Basically what he does is he keeps track of referrals sent to him by his clients, and those who ultimately end up buying from him count as a referral from the original client. Could the same be done with med supp clients? Could you promote a type of competition among your clients and whoever the top 5 referring clients were have a dinner for them? Hopefully my question isn't confusing. Additionally, could you do this with a group of people who aren't clients, but say business associates. Who refers the most people gets a steak dinner?
Rebating?? Is this Legal?
- Thread starter Dix86
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Google "stark law" or maybe not. Stark may apply to doc referrals. I remember hearing that there is a limit of $50/ year per person. You could purchase a decent dinner for that amount in appreciation for the referrals. Rep Pete Stark was one of the main legislators who put the screws to MA marketing when he was representing in the House.
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Rebating is legal in Florida, but I'd call the DOI to make sure you CYA.
https://dworkinassociates.wordpress.com/2012/09/27/a-sticky-issue/
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Here's the dirt on FL rebating (Attached).
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Looks like a lot of hassle!
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I wouldn't touch the consideration of rebating with a 10-foot pole. As far as I'm aware, it's illegal in the insurance world. Real estate is a completely different animal with regards to rules and regulations.
Even if you happen to be in an area where it's somehow allowed, I could only imagine the numerous rules attached to it and oversight CMS would have if/when issues or complaints arise.
Last thing I would want to do is put myself in a situation where I come under scrutiny - even if it's somehow legal where you are. I just hate worrying about whether a birdie is constantly looking over my shoulder.
Just my two cents...
Even if you happen to be in an area where it's somehow allowed, I could only imagine the numerous rules attached to it and oversight CMS would have if/when issues or complaints arise.
Last thing I would want to do is put myself in a situation where I come under scrutiny - even if it's somehow legal where you are. I just hate worrying about whether a birdie is constantly looking over my shoulder.
Just my two cents...
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I'M not trying to split hairs, but could you invite them to a seminar and provide dinner?
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There is a difference between Rebating and paying a Referral Fee.
Rebating, as far as I know, is only legal on the P&C side. And as that pdf shows, it is pretty convoluted to do it legally. Definition of Rebating is agreeing to pay them part of your commission if they buy a policy from you.
A Referral Fee is legal in almost every state. The regs are very state specific though. Many states limit it to $50... some per referral others per person per year. Also, most states require that the Fee not be dependent on making a sale.
Some states (I think NV is one) do allow the fee to be dependent on making a sale and even allow the fee to be a % of the commission earned (its not capped to $50 there).
So check with your DOI. I also think it varies depending on the product sold.
In SC, what the OP described would be legal (from what I understand) as long as they keep the price they pay per person under $50 per referral. For people who refer more than one that would be easy. You easily could make it a +1 invitation assuming multiple referrals from each person invited.
Rebating, as far as I know, is only legal on the P&C side. And as that pdf shows, it is pretty convoluted to do it legally. Definition of Rebating is agreeing to pay them part of your commission if they buy a policy from you.
A Referral Fee is legal in almost every state. The regs are very state specific though. Many states limit it to $50... some per referral others per person per year. Also, most states require that the Fee not be dependent on making a sale.
Some states (I think NV is one) do allow the fee to be dependent on making a sale and even allow the fee to be a % of the commission earned (its not capped to $50 there).
So check with your DOI. I also think it varies depending on the product sold.
In SC, what the OP described would be legal (from what I understand) as long as they keep the price they pay per person under $50 per referral. For people who refer more than one that would be easy. You easily could make it a +1 invitation assuming multiple referrals from each person invited.
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