CMS Proposal to End Multilevel FMO Marketing

[MedSuppPro]

If CMS ends the multi level FMO marketing scheme — would that break your heart? In other words — agents would contract directly with the carriers without an FMO making grotesque profits off your MA and PDP business.

 

[azmedsupagent]

Any good fmo is a compliance leader. Without the fmo interface between agents, carriers and cms all hell will break lose as far as compliance is concerned. If cms is worried about unscrupulous agents, just wait till they dont have the resources and guidance of an fmo that helps all good agents stay compliant.

 

[Midlevel]

Any good fmo is a compliance leader. Without the fmo interface between agents, carriers and cms all hell will break lose as far as compliance is concerned. If cms is worried about unscrupulous agents, just wait till they dont have the resources and guidance of an fmo that helps all good agents stay compliant.

Are you referring to the 2 emails a year we get which is copied and pasted from CMS website? I don't think I would know if there was no longer an FMO between me and the companies. All my marketing dollars come directly from the carrier. I just make the FMO tens of thousands of dollars a year and shut my mouth.

 

[DonP]

If CMS ends the multi level FMO marketing scheme — would that break your heart? In other words — agents would contract directly with the carriers without an FMO making grotesque profits off your MA and PDP business.

Read the cms proposal on this . Fmo's are making an insane $700 an app override which includes commissions ,marketing money , Soft marketing money and bonuses . It said the avg total commissions for a true up is $1300 of which $601 is paid to the agent . That is extortion . On another note in the communique it says they're proposing $635 total comp for 2025 . That's about a 4% increase .

 

[wehotex]

If CMS ends the multi level FMO marketing scheme — would that break your heart? In other words — agents would contract directly with the carriers without an FMO making grotesque profits off your MA and PDP business.

I wouldn't like it to end completely. I think that if a person cultivates and teaches agents how to do the work should get override, but to get what the top levels are getting now is ridiculous. My current upline does A LOT for us, previous agencies not so much. The previous agency was a couple of brothers who inherited the agency when their dad died. All they ever did was hog the carrier leads for themselves, hoard the carrier marketing money and then chase those leads down themselves making the higher commissions for their sales. What if the FMOs have to prove something similar to a Medical Loss Ratio?- proving that at least 80% was spent on marketing, not their new swimming pool or vacation.

Any good fmo is a compliance leader. Without the fmo interface between agents, carriers and cms all hell will break lose as far as compliance is concerned. If cms is worried about unscrupulous agents, just wait till they dont have the resources and guidance of an fmo that helps all good agents stay compliant.

Rigorous training, more restrictive licensing and the usual fear of losing appointments could possibly replace the necessary compliance. Some of the current crop of agents are just throwing to see what sticks.

 

[Fisher]

That is extortion .

I don't think that word means what you think it means.

 

[InsuranceGuy29]

As long as I see a fair and DECENT portion of that insane money that FMO's are making, I'm all for it. Throw us at least another $125-$150 per client (to help with marketing, education, retention, and such). Granted, all FMO's are different....some are very active and great and others are literally non-existent ghosts. You can't paint them all with a broad brush. But mine is a ghost. I'm out here doing all the stressful rigorous work and they're making more money off the application and client than me. To be honest, I learn more about compliance from the carriers.

 

[Todd King]

Read the cms proposal on this . Fmo's are making an insane $700 an app override which includes commissions ,marketing money , Soft marketing money and bonuses . It said the avg total commissions for a true up is $1300 of which $601 is paid to the agent . That is extortion . On another note in the communique it says they're proposing $635 total comp for 2025 . That's about a 4% increase .

These figures are wrong! First off, you can't say they make money with the marketing money that they dole out to the agents. It's insane that they think the FMO makes $700 per sale and even more insane to say they make $1300 on a true up.

 

[Todd King]

As long as I see a fair and DECENT portion of that insane money that FMO's are making, I'm all for it. Throw us at least another $125-$150 per client (to help with marketing, education, retention, and such). Granted, all FMO's are different....some are very active and great and others are literally non-existent ghosts. You can't paint them all with a broad brush. But mine is a ghost. I'm out here doing all the stressful rigorous work and they're making more money off the application and client than me. To be honest, I learn more about compliance from the carriers.

Don't believe those numbers. They are not making more than you on an enrollment.

 

[jacobtn]

Read the cms proposal on this . Fmo's are making an insane $700 an app override which includes commissions ,marketing money , Soft marketing money and bonuses . It said the avg total commissions for a true up is $1300 of which $601 is paid to the agent . That is extortion . On another note in the communique it says they're proposing $635 total comp for 2025 . That's about a 4% increase .

it may be a lot of things, but it's not extortion lol... you have the wrong defintion of the word.