Why did I only get paid $5 commission on a new to medicare supplement?

[LivinginOz]

Good thread, I'm learning new stuff every time I read! As I go along, I've got a couple of things to add, and a question or possibly a hundred! But for now, an observation.

First, it seems agents are sometimes obtuse in replying to discussions about Med Supps. I think most agents know the States control this market. So, I don't get why ppl jump up & down demanding they know how it works. I'm not even sure what state the OP is in. I may have missed mention of a state, but responding authoritatively with your state-specific expertise is not helpful unless you acknowledge that it is only expertise about Med Supps in state(s) "blah, blah, and blah!" To me, it would be vastly more helpful for replying agents to identify the state they to which they are referring!

Thanks for letting put my 2 cents in here!

Kansas

 

[Russ]

and you always got GI on those??

You ask a lot of questions. Are you the forum police? Wow.

Carry on.

 

[Baseball7]

New to Medicare is not GI. They are OE.

That’s the key on this.

 

[somarco]

Its easy if you can pass underwriting why in the world would you even mention GI

there is no reason to even speak about it if they can do underwritten

............................................................................................................................................
Some companies make you go GI if the client qualifies for GI, even if they can pass UW. They'll beat you out of your commissions if they can.[/QUOTE]

Don't use those carriers . . .

Must be unique to your area. I have never encountered this kind of mandate. Carriers don't MAKE me do anything . . . but I do learn how to use their rules to the advantage of my clients.

 

[somarco]

Good thread, I'm learning new stuff every time I read! As I go along, I've got a couple of things to add, and a question or possibly a hundred! But for now, an observation.

First, it seems agents are sometimes obtuse in replying to discussions about Med Supps. I think most agents know the States control this market. So, I don't get why ppl jump up & down demanding they know how it works. I'm not even sure what state the OP is in. I may have missed mention of a state, but responding authoritatively with your state-specific expertise is not helpful unless you acknowledge that it is only expertise about Med Supps in state(s) "blah, blah, and blah!" To me, it would be vastly more helpful for replying agents to identify the state they to which they are referring!

Thanks for letting put my 2 cents in here!

Kansas

I am not sure what you mean by "states control this (Medigap) market".

For sure, Medigap plans are REGULATED at the state level, and states decide which carriers can be admitted to write business in their state, but saying they control the market seems a bit broad.

States also decide the rating basis . . . attained age, issue age, birthday rule, etc.

Carriers also bring their own idiosyncracy's to the market with underwriting differences and commission levels.

Medigap plans are designed by CMS but not regulated by CMS.

 

[goillini52]

............................................................................................................................................
Some companies make you go GI if the client qualifies for GI, even if they can pass UW. They'll beat you out of your commissions if they can.

Don't use those carriers . . .

Must be unique to your area. I have never encountered this kind of mandate. Carriers don't MAKE me do anything . . . but I do learn how to use their rules to the advantage of my clients.[/QUOTE]
I wouldn't use those carriers in that situation.

 

[Todd King]

Funny exact same thing just happened in Oklahoma . Rule went into effect 9-1-23.
Wasn't even made publicly know until 9-7-23. First it was going to be an Anniversary Rule, then they changed it to Birthday Rule. It was done administrationally not legislativeĺy. So no one knew. Aetna, MO, UA,Blue Cross didn't even know the law had gone in effect in our state till I contacted them trying to get info. Wonder if if there is something in the water.

I'm going to try and work with a friend in the legislature(insurance agent too) and see if we can pass legislation requiring compaies to pay full commision On GI. I expect push back. In some states this is law. Otherwise clients suffer because no agent will give them the time of day.

Interesting fact the closed blocks are the most profitable not the new ones. This maybe shake things up if companies lose those blocks. Blue Cross is standing tall saying they will pay full comp on GI. They just might do it.

If you want, I can put you in touch with Rick Bronstein. He got this done in Nevada, so he should be able to give you some pointers. Just PM me and I'll give you his number.

 

[QuoteQuester]

It does seem unusual to receive a $5 commission on a new Medicare Supplement Plan F policy, even if it's a guaranteed issue policy. Here are some points to consider and steps you might take to understand this situation better:

1. Commission Structures: Typically, commissions for Medicare Supplement plans are a percentage of the premium and can vary significantly depending on the insurance company, the specific policy sold, and the state regulations. It's important to thoroughly understand the commission structure outlined in your contract with the carrier.
   
   
2. Guaranteed Issue Policies: Guaranteed issue rights generally mean that the insurance company must sell you certain Medigap policies, must cover all your pre-existing health conditions, and can't charge you more for a Medigap policy because of past or present health problems. While it's true that commissions might be lower for guaranteed issue policies, a $5 commission still seems atypically low.
   
   
3. Carrier's Policies: Each carrier has its own set of policies regarding commissions, especially concerning guaranteed issue situations. There might be specific clauses or conditions under which commissions are reduced.
   
   
4. Review the Contract: Revisit your contract with the carrier or the commission schedule they provided. This should outline the payment you can expect for different types of policies, including guaranteed issue plans.
   
   
5. Ask for Clarification: If the commission schedule isn't clear, or if this situation wasn't addressed, you should ask for clarification from the carrier. You have the right to understand how your commissions are calculated and why this particular sale resulted in such a low commission.
   
   
6. Industry Standards: Talk to other agents or look into industry forums to see what the typical commissions are for similar policies. This can give you a sense of whether $5 is a normal commission for a guaranteed issue Medicare Supplement Plan F policy.
   
   
7. Agency Overrides: If you are working with an agency, there could be overrides or splits in a commission that you may not be fully aware of. Ensure that you know how your commission might be affected if there is an intermediary involved.
   
   
8. State Regulations: Insurance commissions are also subject to state regulations, which can affect how much and when commissions are paid. Make sure there aren't any specific state rules that could be impacting your commission.
   
   
9. Making Money on Supplements: Generally, agents make money on Medicare Supplements through the accumulation of multiple policies and renewals. The initial commission may be just one part of the overall compensation when you consider the potential for renewal commissions in subsequent years.
   
   
10. Action Steps: If the payment seems incorrect or not in line with the industry standards, take the following steps:
    
    • Review your contract.
    • Contact your upline or agency if you're working with one.
    • Speak to the carrier directly for a detailed explanation.
    • Consult with other agents or industry experts.
11. Future Sales Strategy: Moving forward, you might want to strategize on selling policies that offer higher commissions and better align with your income goals, keeping in mind the balance between serving your client's needs and maintaining a viable business model.
    

In the insurance industry, it's crucial to have a clear understanding of commission structures and to ensure that any anomalies are addressed promptly. If after reviewing your contract and speaking with the carrier you still believe the commission paid is incorrect, you may need to take further action, potentially including escalation within the carrier's management or seeking legal advice.

 

[Millwood]

It does seem unusual to receive a $5 commission on a new Medicare Supplement Plan F policy, even if it's a guaranteed issue policy. Here are some points to consider and steps you might take to understand this situation better:

1. Commission Structures: Typically, commissions for Medicare Supplement plans are a percentage of the premium and can vary significantly depending on the insurance company, the specific policy sold, and the state regulations. It's important to thoroughly understand the commission structure outlined in your contract with the carrier.
   
   
2. Guaranteed Issue Policies: Guaranteed issue rights generally mean that the insurance company must sell you certain Medigap policies, must cover all your pre-existing health conditions, and can't charge you more for a Medigap policy because of past or present health problems. While it's true that commissions might be lower for guaranteed issue policies, a $5 commission still seems atypically low.
   
   
3. Carrier's Policies: Each carrier has its own set of policies regarding commissions, especially concerning guaranteed issue situations. There might be specific clauses or conditions under which commissions are reduced.
   
   
4. Review the Contract: Revisit your contract with the carrier or the commission schedule they provided. This should outline the payment you can expect for different types of policies, including guaranteed issue plans.
   
   
5. Ask for Clarification: If the commission schedule isn't clear, or if this situation wasn't addressed, you should ask for clarification from the carrier. You have the right to understand how your commissions are calculated and why this particular sale resulted in such a low commission.
   
   
6. Industry Standards: Talk to other agents or look into industry forums to see what the typical commissions are for similar policies. This can give you a sense of whether $5 is a normal commission for a guaranteed issue Medicare Supplement Plan F policy.
   
   
7. Agency Overrides: If you are working with an agency, there could be overrides or splits in a commission that you may not be fully aware of. Ensure that you know how your commission might be affected if there is an intermediary involved.
   
   
8. State Regulations: Insurance commissions are also subject to state regulations, which can affect how much and when commissions are paid. Make sure there aren't any specific state rules that could be impacting your commission.
   
   
9. Making Money on Supplements: Generally, agents make money on Medicare Supplements through the accumulation of multiple policies and renewals. The initial commission may be just one part of the overall compensation when you consider the potential for renewal commissions in subsequent years.
   
   
10. Action Steps: If the payment seems incorrect or not in line with the industry standards, take the following steps:
    
    • Review your contract.
    • Contact your upline or agency if you're working with one.
    • Speak to the carrier directly for a detailed explanation.
    • Consult with other agents or industry experts.
11. Future Sales Strategy: Moving forward, you might want to strategize on selling policies that offer higher commissions and better align with your income goals, keeping in mind the balance between serving your client's needs and maintaining a viable business model.
    

In the insurance industry, it's crucial to have a clear understanding of commission structures and to ensure that any anomalies are addressed promptly. If after reviewing your contract and speaking with the carrier you still believe the commission paid is incorrect, you may need to take further action, potentially including escalation within the carrier's management or seeking legal advice.

 

[Millwood]

Pretty sure AI just wrote this word salad.