We urge CMS to require brokers and agents to reveal commissions, commission residual schedules, bonu

[Midlevel]

Commissions on MAPD haven’t been prorated for years. At least Aetna and UH pay full no matter when you write it. 12-1 eff dates are the best. Same as the Cost Plan I write so much of.

 

[Tscholar]

Consumers SHOULD know how much we make.

I don't understand why they should know how much we make. Can you elaborate why this would be helpful? Maybe I'm just slow.

It does not change - in any way - their summary of benefits, their EOBs, their premiums, their rate increases, their network (or lack of it), or anything else in their lives.

Totally Agree. Do you know how much your doctor makes, what about your dentist or any other professional person out there. Knowing my salary doesn't change the quality of service that I provide. Someone mentioned earlier that it's no secret that we are paid on commission. whatever we are paid, we all have the same duty of care to our clients to help them do what's best for them.

 

[Midlevel]

I get asked frequently what they owe me when we are done. Once I tell them the company pays us commissions there are no further questions. As someone else stated any *** can google it and have their answer in less then 30 seconds.

 

[wehotex]

Consumers SHOULD know how much we make.

I don't understand why they should know how much we make. Can you elaborate why this would be helpful? Maybe I'm just slow.

It does not change - in any way - their summary of benefits, their EOBs, their premiums, their rate increases, their network (or lack of it), or anything else in their lives.

What about when someone with an MGA/FMO (higher $ contract) is comparing the higher commission $ carrier with a lower commission $ carrier to prospect? Selling a ~$450-500 MAPD vs $301 street level? Does anybody not think that would affect what an agent would offer?

 

[DonP]

An mga with 10 good agents can get a $160 overide . So on his own business he’s at $460 . If he’s a good negotiator he can get $6 a month renewal overide . Let’s say those 10 good agents get to 600 avg mapd clients in renewals yearly . That’s 6 k policys x $6 = $36k a month on the back end month in month out . The 10 agents avg 200 mapd a yr . That’s 2 k policys x $160 = $320 k . Off 10 agents he’s making almost $800 k a year in overides alone .

He’s also getting around $100 k in “ marketing “ non taxable from the carriers . He spends around $200 k a yr in marketing money for the agents . 70% of that is covered from marketing money the fmo gets from the carriers . He spends around $60k out of his owl pocket . But that is easily covered from the overrides on his own business . That’s why we have CO’s killing each other for business . The money on overrides and what the CO’s make insane . The writing agent seeing none of this . That’s why high producing agents should be negotiating with their up lines squeezing them hard . Your value is incredible and your bargaining position great .

 

[sshafran]

What about when someone with an MGA/FMO (higher $ contract) is comparing the higher commission $ carrier with a lower commission $ carrier to prospect? Selling a ~$450-500 MAPD vs $301 street level? Does anybody not think that would affect what an agent would offer?

That would imply they do volume with the carrier with a higher contract and likely see more value in it.

We are agents.

We sell.

We like to do so at a profit.

And sometimes yes, all things being mostly equal, I'll make carrier A sound a little rosier than carrier B because of marketing money, incentives, etc.

Even with UHC I make less for Med supp but I value the stability - that's an extra "commission" in my book (and my client's)

I expect my roofer to recommend GAF shingles if that roofer does the volume with GAF to be in their elite program. And GAF is a great shingle - even if not the cheapest and likely just as good as many others.

Everyone wins.

And I see no problem with selling (quality) Ins products I'm incentivized to sell because I also will also sell the GI for $0, help with PDPs I get nothing on, etc.

I wonder if a Doctor gets more $ if a fat guy walks in and the doctor give him pills and a rigorous follow up schedule rather than telling him to hire a personal trainer named ____ at ___ gym and don't come back until you've changed your body fat percentage from 33% down to 18% or lower.

But there's no money in that for the MD.

 

[Chazm]

Commissions on MAPD haven’t been prorated for years. At least Aetna and UH pay full no matter when you write it. 12-1 eff dates are the best. Same as the Cost Plan I write so much of.

He’s not referring to T65’s. If you write someone on a MAPD to a new MAPD mid year, UHC will prorate.

 

[Midlevel]

He’s not referring to T65’s. If you write someone on a MAPD to a new MAPD mid year, UHC will prorate.

I guess maybe he means D-SNP? I don’t write someone from one to the other MAPD past 3/31.

 

[DonP]

I guess maybe he means D-SNP? I don’t write someone from one to the other MAPD past 3/31.

18 million Medicare people dual or lis and can be moved quarterly . Probably 25 million Medicare age people have heart or diabetic issues and can switch monthly . All those are prorated if moved anytime during the yr .

 

[InsuranceGuy29]

Seriously? If someone asks you the commission structure, you tell them (in whatever way) to KMA? Nice way to gain trust with your clients.

1. Its pretty easy to Google it
2. Consumers SHOULD know how much we make.
3. If someone looks, I bitch about the commission disparity between MS and MAPD on a regular basis on Twitter.
4. EVERYONE makes more on MAPD. Carriers, General Agents, Agents. Anyone who doesn't think "follow the money" isn't contributing the rise in MAPD needs to wake up.
5. Here's my spiel: "I make 3x as much on Medicare Advantage vs Medicare Supplement. If you want the exact numbers, I can give you Advantage because its published by CMS, if you want Medigap, it varies based on carrier. For budgeting purposes, I assume $22 per month for 7 years."

And the sexist answer. Women, especially, need to be more open on income/salary. It will help to destroy the wage gap. The days of not disclosing income between peers needs to end. On the other hand, the wage gap was a contributing factor in me jumping off the cliff.

I like a lot of your posts, but I have to respectfully disagree with some of this...especially #4. Medicare Advantage has gotten immensely stronger in most areas over the past decade. Moreover, the economy is in the crapper, inflation is through the roof, and a lot of people are cash-strapped and on VERY tight budgets. It's pretty hard to compete with a $0 monthly premium and low/reasonable copays.

The vast majority of my MAPD sign-ups are people going from one MAPD plan to another. I'm pretty confident in saying that's the case for most agents, as well. T-65's are probably roughly 20% of my MAPD sign-ups. When someone is going from one MAPD to another, you obviously know the yearly pay is actually less (in many cases) than supplements.

When all is said and done, both MAPD's and supplements probably average right around the same pay. Whether someone wants to go with a supplement or MAPD, that genuinely never factors into anything with me. I offer both....you do the best thing for you. In this business, your reputation is everything.