Will Commissions Be Cut for Medicare Under the Reform?

[Josh]

I see where it states that for MA, but I don't see where it says that for Med Supp. Being "supplemental" insurance, I am not sure they would be subject to the 85% rule.
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With regards to MA, here is another perspective...

Much of the revenue for these policies comes directly from the government, not premiums. I would guess that half of the MAs in my local area are $0 premium policies, and the other policies certainly don't have high premiums (ranging from $29 - $100+). So when viewed as a group, my guess is that many of the companies are paying over 100% of premium dollars on claims. As a result, I would think they could still maintain commissions at a competitive rate.

Of course, I am no MA expert and this is just my personal speculation. I would love to hear what others think.

The premium includes what the government pays. It's really a non-issue for MA for a few reasons:

1. They are already required to have a high MLR, no big surprises there.
2. The average premium the government pays for the senior is around $10k/year. Even with a first year commission of $400 that's about 4% or less.
3. MA's are already having their commissions stipulated in ways that may or may NOT make sense, they've been dealing with "reform" for quite some time.

Also, I think $200 for selling someone who is not new to medicare with all of the regulations and marketing rules is nowhere near competitive. For less work you can sell a life policy that'll pay $600 and not have to worry about CMS stealing your first, third, and fifth born.

 

[oicu812nbama]

all individual health insurance plans (that definition can apply to supps and ma's) will operate at 80%. i got the letter from bc/bs this weekend. indiv health commissions will drop effective jan 1, 2011 and will only be paid as earned. this will apply to supps as soon as a few seniors whine to obama about their price increases. ma's however being set up to save the government money will not be affected. they will remain a choice.
i hate ma's and believe supps are best but this is what's going to happen. slice it dice it, say i don't know what im talkin about, say that blue cross will not lead the way for the rest, etc. but marker down. the new czar believes that our country should model englands health care plan so do some research for yourself. don't count on supps in a couple of years. the "new" supps will be lower in price and have no preexisting limitations. seniors will switch and you will lose your renewals. for all hate mail just dial 1-800-eat-sh*t
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also, advantage plans are lucky to profit 5% after administrative cost. they will not be affected.

 

[vertex]

It is certain that medicare advantage plans will have to start charging more to offset the decrease in compensation from the government - probably to be more in line with med supp cost.


Arizona Medicare Advantage Plans and Arizona Medicare Supplement Plans

 

[Frank Stastny]

It is certain that medicare advantage plans will have to start charging more to offset the decrease in compensation from the government - probably to be more in line with med supp cost.


Arizona Medicare Advantage Plans and Arizona Medicare Supplement Plans

That is why I and many others I have talked to feel we are on the brink of a huge explosion in Med Supp sales. It will begin in October.

 

[arnguy]

When Frank says NO, he means NO!!!!

 

[medx]

Anyone who will take the time to do research on the new Medicare Chief that Obama recently appointed without any Hearings/Confirmation... you will find out he has extreme socialist views, who has already said that Health coverage should be used as a redistribution of wealth, he also believes in rationing, and wants to mold our health care to what England has. And if you also look at what has already taken place over the last year and a half, it is wishful thinking to honestly believe that medicare and medicare supplements are not going to be changed by the new Medicare Chief, and not in a way that will benefit the insurance agent.

FRC Action: Donald Berwick's Views on Rationing Will Undermine U.S. Health Care System - Yahoo! News

"[COLOR=#366388 ! important][FONT=arial,helvetica,clean,sans-serif][COLOR=#366388 ! important][FONT=arial,helvetica,clean,sans-serif]Donald [/FONT][/FONT][FONT=arial,helvetica,clean,sans-serif][COLOR=#366388 ! important][FONT=arial,helvetica,clean,sans-serif]Berwick[/FONT][/color][/FONT][/color][/color] is another example of President Obama's extreme liberal agenda, and only the latest in President Obama's numerous missteps related to health care in America.


"Donald [COLOR=#366388 ! important][FONT=arial,helvetica,clean,sans-serif][COLOR=#366388 ! important][FONT=arial,helvetica,clean,sans-serif]Berwick[/FONT][/FONT][/color][/color] has stated himself that England's socialized medical services are better than those in the United States, and has said that 'any [COLOR=#366388 ! important][FONT=arial,helvetica,clean,sans-serif][COLOR=#366388 ! important][FONT=arial,helvetica,clean,sans-serif]health [/FONT][/FONT][FONT=arial,helvetica,clean,sans-serif][COLOR=#366388 ! important][FONT=arial,helvetica,clean,sans-serif]care[/FONT][/color][/FONT][/color][/color] funding plan that is just, equitable, civilized and humane must, must redistribute wealth from the richer among us to the poorer and the less fortunate. Excellent health care is, by definition, redistributional.'


"Another quote from just last year shows how Dr. Berwick makes very clear his view of the government's role in health care. He stated in an interview that '[t]he decision is not whether or not we will ration care – the decision is whether we will ration with our eyes open.'
"Americans should keep their eyes open to guard their health from Donald Berwick's extreme view of medicine. He will only bring [COLOR=#366388 ! important][FONT=arial,helvetica,clean,sans-serif][COLOR=#366388 ! important][FONT=arial,helvetica,clean,sans-serif]America's[/FONT][/FONT][/color][/color] high standards for health care services down, and hurt Americans through rationing and lower standards of medical treatment."

Medicare Medigap Insurance Humana Aetna United of Omaha
Medicare Supplements
Medigap Information for Seniors, Retired people, over 65 insurance
American Seniors Insurance
Medicare part a medicare part b medicare part d
Medicare Supplement News

 

[stormtracker]

ALL senior insurance products are in the government crosshairs. Sure, it has started with the MA's, but it is only a matter of time until all senior products come under national scrutiny-- and control.

 

[VaDwayne]

Medicare, and supplements, and definitely MA plans, are in the cross hairs of the Obama administration. I saw a post on here that stated that even if commissions were cut, insurers would still have to honor our contracts, BULLCRAP!!!! This is the good ole USA where contracts are broken all of the time, and as long as the Supreme Court is appointed by their party affiliation(President Obama), they can change laws, including contract law, to suit the president. He owns the court. Remember the Bush-Gore debacle, where Bush was elected by the state where his brother was governor(hanging chads, yeah whatever), and a conservative court.

If you are selling Med Supps ONLY, you are playing with fire and your career. You better diversify now to hedge against the government ruining your life.

 

[medx]

If you are selling Med Supps ONLY, you are playing with fire and your career. You better diversify now to hedge against the government ruining your life.

Agree 100%

American Seniors medicare supplement Insurance by Mutual of Omaha and Humana Aetna Coventry Part D Medigap

 

[wehotex]

Medicare, and supplements, and definitely MA plans, are in the cross hairs of the Obama administration. I saw a post on here that stated that even if commissions were cut, insurers would still have to honor our contracts, BULLCRAP!!!! This is the good ole USA where contracts are broken all of the time, and as long as the Supreme Court is appointed by their party affiliation(President Obama), they can change laws, including contract law, to suit the president. He owns the court. Remember the Bush-Gore debacle, where Bush was elected by the state where his brother was governor(hanging chads, yeah whatever), and a conservative court.

If you are selling Med Supps ONLY, you are playing with fire and your career. You better diversify now to hedge against the government ruining your life.

The Court has a 5-4 conservative majority. Obama does NOT own the Court. I agree with you that contracts are broken all of the time though.