What does the next Iteration of the FMO market look like if the new rule sticks?

[Todd King]

I was going to say this . Justin Brock changed the name of his group from all Medicare to add life and aca . Fmo’s have been diversifying hard for a yr as all jumping into fe , life and annuities . Pushing med sups , cancer and hospital plans big . I think 2025 will be huge to sell a lot of hospital plans . I got around 100 gtl and medico on the books . I think I can triple that by the end of 2025

Justin had to change the name of his group to stay compliant. That's all.

 

[Todd King]

Hmmmm, which speculation to believe? Can't all be right. FMOs promoting MA without any override isn't going to happen. If it does, the whole system is liable to collapse and it won't be pretty.

 

[vic120]

Hmmmm, which speculation to believe? Can't all be right. FMOs promoting MA without any override isn't going to happen. If it does, the whole system is liable to collapse and it won't be pretty.

well thats just it the oct will be a massacre IF don is correct

Now I am not saying he is not, I am just saying It seems strange no one on top is going to speak out as to manage expectations

Just there will be a change in 3 and half months that MOST are not expecting and MANY are going full force as if there will be no change

they are all quoting a page and saying this shows that overrides are not going away

and no one is saying because of this page the other page is null and void but rather are just saying there are no overrides

Honestly I had not been concerned until I keep seeing Don with his multible credible sources, and I am just trying to decide if I believe he has any more info then anyone else or is just speculating like many others

 

[DonP]

Justin had to change the name of his group to stay compliant. That's all.

That’s incorrect Todd . He changed it to Life , health and MEDICARE monsters . So Medicare still in there . Calling yourself Medicare monsters is not against rule . Is I sell Medicare plans not compliant? No . Using Medicare to appear your affiliated with Medicare is not compliant. His Facebook name did no such thing

 

[GoPokes]

Sam Melamed on LinkedIn: What does the Medicare FMO market look like if the 4 lawsuits against CMS… | 38 comments

What does the Medicare FMO market look like if the 4 lawsuits against CMS do not prevail and the new law goes into effect with a more onerous final reading and… | 38 comments on LinkedIn

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I think it will look similar, but different. Like, when you see someone you havent seen in awhile, they look different, but it's the same person.

Overrides might be called something else, FMO's might be paid for the value they add, but in a different fashion.

The FMO & Agent contracts will be different. There may be different language for what an override is, and why it's there. Currently, calling it "administrative" is likely a vast generalization, doing more harm than good.

So, I imagine there will be verbiage which helps to identify what types of tasks an upline performs, and the value added benefits, and how they are compensated for such.

Personally, I think it would be interesting to do a deep dive on a commission structure that actually increased each year that a member was not moving plans. (like, the opposite of a vanishing commission)

In theory, this could incentivize agents to help members find a plan that really fits, and be rewarded for low turnover. You wouldn't need to have a HUGE book to make a good living, but you could devote more time to service, without making less. Members would get more service. Less industry churn, leads to less waste.

This could also have challenges, but it is a plan that hasn't existed before, but could help solve some problems.

 

[LostDollar]

Personally, I think it would be interesting to do a deep dive on a commission structure that actually increased each year that a member was not moving plans. (like, the opposite of a vanishing commission)

Caveat, not an agent.

If what I read here is any indication, that wont do a thing to stop plan movements, at least for some segments of the MA market, unless there is also some industry wide stabilization of plan design. That stabilization of plan design probably won't happen because plan movement has been in the interests of the carriers-- each carrier just hopes they will be the ones with the net gain from plan movement.

And for the upcoming year, there have been posts suggesting there are carriers that desire movement away from their plans, It seems to me that stabilizing commissions on those products at this time would be counter productive for the expressed goal of reducing market share.

There also seem to be other forces at play in the market, posts have been made here about hospitals closing due to low Original Medicare reimbursements and also about Hospitals dropping MA contracts because of payment obstacles thrown at hospitals by MA plans. In short, it might be that market factors will emerge that make MA a less viable, rather than more viable, health insurance option for the Medicare Beneficiary community.

 

[hockeyday]

That’s incorrect Todd . He changed it to Life , health and MEDICARE monsters . So Medicare still in there . Calling yourself Medicare monsters is not against rule . Is I sell Medicare plans not compliant? No . Using Medicare to appear your affiliated with Medicare is not compliant. His Facebook name did no such thing

Probably has to do with the sales of 1/2 his biz for 70 million

 

[straightnochaser]

Caveat, not an agent.

If what I read here is any indication, that wont do a thing to stop plan movements, at least for some segments of the MA market, unless there is also some industry wide stabilization of plan design. That stabilization of plan design probably won't happen because plan movement has been in the interests of the carriers-- each carrier just hopes they will be the ones with the net gain from plan movement.

And for the upcoming year, there have been posts suggesting there are carriers that desire movement away from their plans, It seems to me that stabilizing commissions on those products at this time would be counter productive for the expressed goal of reducing market share.

There also seem to be other forces at play in the market, posts have been made here about hospitals closing due to low Original Medicare reimbursements and also about Hospitals dropping MA contracts because of payment obstacles thrown at hospitals by MA plans. In short, it might be that market factors will emerge that make MA a less viable, rather than more viable, health insurance option for the Medicare Beneficiary community.

Medicare Advantage isn't going anywhere... I would hazard a guess that total enrollees will increase, not decrease next year.

 

[Special Agent]

Medicare Advantage isn't going anywhere... I would hazard a guess that total enrollees will increase, not decrease next year.

Pretty sure MA enrollment will not decrease in urban areas especially in high med supp premium states like Florida.When med supp premiums go to 300.00 the med supp only slingers will look like the greedy ones

 

[DonP]

Probably has to do with the sales of 1/2 his biz for 70 million

Hard to believe someone would pay him $70 mil. Thats insane for a book that can be shredded fast