Response from Chevell L. Thomas with CMS Regarding Initial MA Payments

[jdeasy]

I don't know where you ger the 25%. I figured I was owed the second half on about 70 apps. Only one of those was a T-65 new to Medicare. The other 69 had PDP plans.

I figured all along that the companies would find a way to not pay us, but, this is an unexpected ploy as to how they did it.

 

[Joe Moore]

I don't know where you ger the 25%. I figured I was owed the second half on about 70 apps. Only one of those was a T-65 new to Medicare. The other 69 had PDP plans.

I figured all along that the companies would find a way to not pay us, but, this is an unexpected ploy as to how they did it.

The agents we are talking to are saying they are only getting about 1/4 of what they were expecting. Sounds as though you may have gotten maybe 2% of what you thought you were owed. OUCH!

With the January 16th memo, I do not see how this can stand. But unless we make enough noise, it will. The problem I see is getting someone with clout that will take enough time and trouble to understand the way we have gotten into this situation, and see it through to help us.

 

[ronmelton3]

If you are looking for blame... look to those on the Congressional committee that created that ^$%& MIPPA law, and the rest of the %#^* that voted it into Law. Vote them out of office!

If however you are looking to do something about it, I believe we need someone to represent us all. What about the NAHU / NALU?
Who has the political strength to hear our plea? Otherwise we are just a few complainers. I believe Congress's view of insurance agents are low on the totem pole anyway thanks to a few so called agents that need to be imprisoned.

 

[jdeasy]

The agents we are talking to are saying they are only getting about 1/4 of what they were expecting. Sounds as though you may have gotten maybe 2% of what you thought you were owed. OUCH!

With the January 16th memo, I do not see how this can stand. But unless we make enough noise, it will. The problem I see is getting someone with clout that will take enough time and trouble to understand the way we have gotten into this situation, and see it through to help us.

It's worse than that, I didn't even get the second half on that one. I have not received one penny except for initial enrollments from any company.

 

[Russ]

It's worse than that, I didn't even get the second half on that one. I have not received one penny except for initial enrollments from any company.

That's pathetic.

 

[stormtracker]

Is this the final nail in the coffin for the Indy in Advantage sales???

 

[Russ]

Is this the final nail in the coffin for the Indy in Advantage sales???

I just sent Mr. Thomas an email letting him know this injustice needs correcting.

 

[craig_ritter]

In my opinion, I think we should take this directly to our Congress Reps and Senators. I don't think e-mailing CMS directly would be helpful going forward (just my opinion).

I've posted on my blog what I believe are the key issues and links to finding your reps and Senators.

Kudos to all those who are taking this up.

 

[allhealthandlife]

I just received a response from Mr. Thomas regarding my email sent two days ago. I wish I could copy and paste his exact reply here, but I am afraid I will be breaking confidentiality rules.

He says that I was given "misinformation" and claims CMS "never" told the plans that enrollments in MA of people previously enrolled in a PDP and Original Medicare would be compensated at the initial rate. He goes further to say that the only enrollments in 2009 that would be compensated as initials were those who were brand new to Medicare or who were not previously enrolled in an MA, Cost or PDP.

Please take time to email him as well as all of your Carriers and let them know this is wrong and we intend to fight until it is corrected. At this point I don't know who to believe, but I will be BARKING at everyone involved. Keep getting LOUDER . . .

Here is his contact info:
Chevell L. Thomas| Marketing Team | Division of Policy, Analysis & Planning | Medicare Drug and Health Plan Contract Administration Group | Center for Drug and Health Plan Choice Centers for Medicare & Medicaid Services | 7500 Security Boulevard, Mail Stop C4-22-04| Baltimore, MD21244-1850 410-786-1387/410-786-8933 [email protected]




My email to him is below . . .


Mr. Thomas,

I am an independent insurance broker representing several Medicare Advantage, Medicare Supplement and Part D Carriers. I have assisted and advised close to 1,000 new Medicare beneficiaries over the past 3 years. I constantly hear them speak of how confusing and overwhelming the "Medicare Process" is to understand. As a responsible independent agent I explain ALL of their options until they understand; then help them choose the plan that meets their needs. I take pride in what I do and deserve to be compensated appropriately. I am completely exhausted and angry at the fact the CMS has determined the best way to compensate me. I had been told in writing from your office that I would be compensated on beneficiaries who were "NEW" to Medicare Advantage or Part D. That compensation was to be called "1st year or Initial " commission payments and were to be double the amount of the "Renewals" which I would receive for years 2-5.

I took your word, invested several thousand dollars in marketing and spent many hours in the homes and on the phone with clients. I have been waiting now 6 months for my "True UP" balance . . . only to find out that CMS lied. I will only be receiving the "Renewal" commission / Half pay on clients that previously had PDP's, but had never been part of the Medicare Advantage Plan. This was not the agreement that CMS handed out to all the insurance companies and I would like to know who made this change. CMS's decision will cost me and my family $5000.00. Please let me know when to expect the remaining balance that is owed to me.

Regards,

This just does not pass the smell test.Given that no agent or FMO that I know of was under the impression that a prior PDP would disqualify for full commission means one of two things - Either:

1. CMS and/or the carriers are so inept and out of touch with agent's expectations that they innocently were not aware of the consensus among agents and FMOs that prior PDP's would be paid as full commission.


2.CMS and/or the carrier's were fully aware that agents didn't have a clue about this but conspired not to disclose it until seven months later because many enrollments would not have happened if agents knew up front they were getting only $ 200.00

 

[Russ]

I got a response from Mr. Thomas today. He told me they will be having a meeting over the next couple of days to determine how to address the situation.

He also said they had had quite a few similar complaints.