What would you do on a PDP sale?

Dec 2, 2008

  1. Russ
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    Russ Guru

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    I have a client...husband and wife, that have Medicare supplements with me....and pay annually. The wife purchased a PDP plan when they first came out. The husband didn't because he could get his at the VA. The wife called me this morning saying she wanted her husband to go ahead and get one...that he was tired of fooling with the VA(for whatever reason....copays, etc.) She's aware of the 1% per month penalty he will pay. Even so, the AdvantraRX value plan won't run over $32 per month with low copays for preferred brand and brand named drugs.

    My question...how thrilled would you be to make an 80 mile round-trip visit for a whopping $27 in commission? I already have all of his information off of his med-supp application. She wants him on the plan....mail the app? Is it legal to do that? I won't say what I did...just curious what others would do?
     
    Russ, Dec 2, 2008
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  2. GreenSky
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    GreenSky Guru

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    First of all, you need to understand PDP rules and penalties before you advise anyone.

    The VA is creditable coverage so there is no penalty.

    The commisison on him would be $54, not $27.

    You might turn this over to someone who has more experience and/or knowledge of this part of the business. It can get tricky if you don't know what you're doing.

    Lastly, you can write Advantra on-line.

    Rick
     
  3. moonlightandmargaritas
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    moonlightandmargaritas Guru

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    I personally would mail/fax/scan-email it - if that's within the rules.

    Now if they were a prospect for something additional that I had already qualified them for...I might take a ride.
     
  4. walleyeb1
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    walleyeb1 Super Genius

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    Enroll him on line and take the ride 48 hours later. After you cool off. Can't forget to cool off!
     
  5. MedSuppPro
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    VA is Creditable Coverage. Knowing whether or not his current prescription coverage is creditable coverage is important. He will at some point get a questioner in the mail and will need to obtain the VA Creditable Coverage Letter. Seems it can be downloaded off VA site -- though not 100% sure.

    Some carriers are allowing through the mail applications. Contact in writing your FMO (No Phone Calls). This is the job of our FMO’s. They should be working for us in light of our commission reductions and new rules. I have written clearance from one of my carriers through my FMO. That works for me.

    I told my FMO “…with all the new rules (SCOPE) and commission reductions (1/2 to 2/3) we all need to re-look at which carriers still require face to face sales. I have an existing block and I plan to move it for my client’s best interest. I can’t afford a $50 or less commission step-up for a renewal replacement of an MA. I obtained the response I needed.

    No, I will not drive and see new business PDP’s for $28 bucks. I’ll take care of my existing client’s. I will mail out my recommendation and have them send it directly into the carrier. If I get credit – good, if I don’t get paid then I’ll take my lump. Coventry will most likely be the one to screw the agent who did this. They are not the most agent friendly carrier. I know many on this site have had nothing but good things to say about Coventry.

    PDP’s through the mail via my client is the best I can do. Not for $28 bucks! Your time and expenses are worth $28 buck!:skeptical:
     
  6. Russ
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    Russ Guru

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    That shows my stupidity, but in my defense I did call Conventry and ask them about Mr. Prospect in the situation he was in. They advised me he would have to pay the penalty...or the lady did that I talked to on the phone..the one that I could tell didn't want to talk to me in the first place.
    - - - - - - - - - - - - - - - - - -

    LOL!

    That stupid "48 hour cooling off" period....for a prescription drug plan...lol. We're not talking about a $30,000 investment in an SUV here....it's a prescription plan.:laugh:
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    Thanks for the information. Most of the time the rep. with Coventry does a good job helping me. Sometimes I would be better off talking to a wall. Ditto with UHC...I talked with someone yesterday that wouldn't shut-up long enough for me to say what I wanted and they questioned whether I was even certified to write a particular policy.

    No...I won't drive 80 miles round-trip for $28 bucks either.
     
    Last edited: Dec 2, 2008
    Russ, Dec 2, 2008
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  7. Bob_The_Insurance_Guy
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    Bob_The_Insurance_Guy Guru

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    You're missing the point. You mentioned that they have been clients of yours for several years. Well, that's commission. The wife has a PDP. That's commission.

    My point being: Sometimes, to keep current clients, you need to spend more than you take in. You've been taking in commissions on their previous years' premiums. Well, this is one instance where you'd spend more to keep them as clients, and make the $54, IN ADDITION TO the current commissions you are realizing.

    And, please, I don't mean it in a harsh way. It's just that we salespeople sometimes forget about the CURRENT commissions we are receiving, where there is very little maintenance.

    What if you wanted to return an item at a store, and their response to you was, "Well, can you pay for shipping? I mean, you haven't really spent THAT MUCH in our store, and we just thought, until you do, you could handle the bulk of it. After all, we don't make that much on returns."

    Relationship selling is a give and take. Sometimes you have to give more than you take. In the past several years, while you've been receiving those commission checks, have you had to make the trip every month?

    Look at the big picture. Put yourself in their situation.
     
  8. jdeasy
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    If you want to enroll them in a Coventry PDP, you can do it online at the customer site. Just put in your agent number where it asks for it and you will get paid.

    He will not have a penalty if he has had uninterrupted VA drug coverage. It's still best to inform them of a possible penalty and let CMS sort it out for sure.

    If you want him in something besides Coventry, you can do it by mail or drive to see him. I have a similar situation with a guy that 45 miles from me and now want to change his PDP. They both have life insurance with me. They both have MA plans with me. I told him I would stop by when in the area before Dec. 31 and take care of it personally. Sometimes the big picture is worth more than the $20 or $30 commission for the PDP now.
     
    jdeasy, Dec 2, 2008
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  9. Bob_The_Insurance_Guy
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    How about asking them to meet you half way, at a diner or donut shop?
     
  10. Todd King
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    Todd King IMO/FMO Owner

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    Seems as though the best thing to do is to mail the app to them and have him sign and return to you. Case closed. You CAN do it online, but you're supposed to be with the client when you do it!! That would defeat the purpose of not driving the 80 miles.
    No matter what they told you at Coventry, VA IS CREDIBLE COVERAGE! If we could just get those broker services people to get an education we would be alright. They are worse than trying to get a correct answer from CMS. As for Coventry itself goes, I find them to be as good or better than any of the other "MA" companies. I've had no problems that haven't been corrected.
    Keep it simple!
     
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