So what is your take?

Nov 16, 2008

  1. theinuranceguy
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    theinuranceguy Guru

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    With new MA commissions released, I know there are mixed emotions.

    What do you guys think?

    I am honestly happy, I like the idea of getting paid $200 for 5 years instead of $400 for only one....

    Not to mention that this year we will most likely be getting paid as earned (unless youre writing someone thats never been on an MA), I like this idea also...

    I'll be honest... I probably will not be making as much money as I have in years past, but by year 3 I will probably be making more money than I ever have in this market...

    I feel sorry for new agents, with new regs, less up front comp... Its hard to stay afloat, but for vet agents this has been a gift.

    So whats your take?
     
  2. Non-golfing Agent
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    Non-golfing Agent Expert

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    I think CMS should stay out of our pockets. These new commissions and renewals could've been set by the private companies without intervention from the government.

    Now agents who are foolish enough to offer these products are at the mercy of CMS to get paid on new people to MA plans. Good luck with that. The buffoons couldn't lead a horse to water, much less figure out commission payments.
     
  3. patch36
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    patch36 Guru

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    Can the renewal commissions be changed next year or are we guaranteed CMS and the insurance companies are done screwing with us? If I was a more trusting person I would be happier.
     
    patch36, Nov 16, 2008
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  4. jdeasy
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    jdeasy Guru

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    I'm unhappy that Wellcare decided to pull a pyramid and pay lower maounts in many counties. They expanded into the most populous Ky county near me and the county where I have the most Todays Options clients that have been calling me because their premium is going to $69/mo. In that county, Wellcare is going to pay $240/$120. So, I make $120 to help these people get into a better plan. I'll make $80 if they stay where they are, so, $40 per year difference to help the clients.

    Great deal for somebody.:D
     
    jdeasy, Nov 16, 2008
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  5. mfrost
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    mfrost New Member

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    I still haven't seen anything in writing from my FMO or CMS stating what the rates are yet. And about the 6 year deal,what do you think the percentage of people that will stay on for 1,2 or even 3 years is. Other agents will be flipping them to another plan ASAP.
     
    mfrost, Nov 16, 2008
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  6. mcleanbr
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    mcleanbr Super Genius

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    Are we getting paid for enrollees already sign up by us in previous years? If so, when will that check come or is it going to month to month. I haven't seen all the detail yet.

    thanks,

    p.s. my thought are the same if we get paid on client that we already have signed up. I agree with the idea of letting the free market determine commissions not the govt. I believe that President-Elect Obama is going after Medicare Advantage and really messing it up. I am still pursuing clients for Medicare products and will hold my breath as I go!
     
    mcleanbr, Nov 16, 2008
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  7. wilkin
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    wilkin Guru

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    I don't think you can write someone a MA then sit back and just watch the renewals roll in for five more years like a med supp. These plans are labor intensive to hold onto from year to year. And the more you write each year the less time you have to spend retaining your business because of the limited enrollment periods.

    Every year the companies spend millions on advertising prior and during AEP to steal our business and write it direct.

    And as far as commission changes....you bet they can change them from year to year. So what we may get paid this year is nothing we can count on in future years.
     
    wilkin, Nov 16, 2008
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  8. Tina
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    Tina Expert

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    I think the "churning" problem comes from the insurance companies and this new commission structure will not affect it at all. Every year the plans change, the plan that is good this year might be crap next year. Since the intent of the CMS changes is to build a long term relationship between the insurance company and the senior on the plan, what CMS needs to regulate is the plans! Then there will not be a reason for agents to "churn" business.

    The plan types need to be standardized so the only determining factor is if the Dr. is in network for the HMO's and PPO's and if the client's drugs are on the formulary. The MOOP of these plans needs to be balanced with the premiums so the cost to the client will be the same if all benefits are used regardless of the plan. That will give people the option to have more control over their health care dollars if they are healthy and want to take the risk they will only need preventitive care. The $$ part should only be risk v cost, not this plan I was last year that was great is now complete crap and I'll be screwed either way if I stay on it.

    There are 2 good PPO's in Phoenix, co-pays are basically the same, as are the ancillary benefits, the only real difference is the MOOP for Humana is 500-1k more. Since Coventry's PPO is a new plan, not offered here before, and the MOOP is less, with everything else being equal, guess what people are wanting? I don't think that is the independent agent "churning" business to make a buck. It's the insurance companies competeing for business, using agents as the fall guy to push their agenda.

    With the max, 6 year commission pay-out on MA's, insurance companies know independent agents won't touch later renewals after that, unless there is some type of other business relationship there. That means after that seniors will be left to the captive agents and we are back to high pressure sales :swoon:

    It would make sense after this if medicare would pay for a consulting fee to independent agents to go over all of that years available plans. Since we won't be selling the plans, it would be an independent overview of what is available that year and allow seniors to make an informed decision when all the captive agents start calling with their high-pressure sales tactics to get them to switch to their new plan.

    I'm new to insurance, but have a decent understanding of how business works. That's my n00b .02 on the whole thing. And what I have written my congressman, along with my parents, grandparents and their friends ;)

    I do like the way renewals are paid out though. I too would rather take less up-front for more over time.
     
    Tina, Nov 16, 2008
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  9. policy doctor
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    Some of you folks are not reading the posts, but skimming.

    You do know that CMS has to approve this last round of commissions, right? Haven't you found it curious that some carriers increased commis from the previous years? I thought that was why this fracas started.

    And to those of who who think your renewals will grow exponetially thru the years, SAY WHAT?

    Are you not getting calls from MA hoppers looking for another company to go with? Trying to retain them means annual credentialing with multiple companies and what if more plans come into your area? How much of this abuse will you take/per company? I think those tests are getting tougher with some carriers already. I'm not running with a team of horses any more.

    And by the way, what makes us think, assume, that all these companies will re-hire us again next year, or the next? They may phase out indy agent, and just use phone-ins and mail for new enrollments. That might be the future plan, you know. This is an annual contract.

    I think i'm getting disagreeable. Who's that therapist again, Rabbi?
     
  10. insureyou2@
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    i still think people will not be staying with pffs plan like they would medigap policy there are two many changes year from year. We need to standardnize the product (ma) plans
    J TO Z and have no lock in periods. also i think companies will have bonuses to offset poor commissions or call it production bonuses