Group Proposes Cap on Medicare Advantage Plan Brokers’ Total Comp

[Northeast Agent]

[EXTERNAL LINK] - Group Proposes Cap on Medicare Advantage Plan Brokers’ Total Comp | ThinkAdvisor

The group, the Alliance of Community Health Plans, put the broker compensation cap proposal in a new preview of alliance ideas for improving the Medicare Advantage program.

AHCP contends that expanding the current Medicare Advantage program broker commission limit to include administrative fees would improve program integrity by keeping brokers from steering clients to certain health plans rather than others because of total payment amounts.

 

[StephanieCJ]

There is not enough difference between the MA and Supp commissions for me to care which plan they pick as long as they are happy with it and will refer me business.

 

[somarco]

There is not enough difference between the MA and Supp commissions for me to care which plan they pick as long as they are happy with it and will refer me business.

From the article link . . .

The maximum Medicare Advantage broker commission is $750 per enrollment this year, but plans can pay $1,300 per enrollment or more by adding administrative fees and other extra fees.

Carriers are padding their bottom line from the dole and THAT's where the cash needs to be trimmed (and probably will be in the near future). Of course some of that money that is not used for overhead and claims eventually ends up in the agent's pocket in the form of commissions, bonuses, lead generation, etc.

Once DC starts to squeeze the carriers will (of course) remain profitable but policyholders and agents will see notable changes as well.

Allison has been writing about health insurance since before ACA and also Medicare. She sometimes does a credible job of reporting but also misses the mark more than she should at this point . . . probably her left leaning bias coming through.

 

[StephanieCJ]

MA only goes up to 750 in certain markets and only for clients new to that plan type in their first year. For most of us its 600 first year and 300 year 2 and beyond (ish). Supp ranges 250, but then I have the PDP as well and probably a dental policy. It's a wash for someone working on a referral basis and not doing any sort of advertising. I do get some offers for advertising money and will run mailers with it, but I run the you call me mailers and not the BRC.

 

[wehotex]

From the article link . . .

The maximum Medicare Advantage broker commission is $750 per enrollment this year, but plans can pay $1,300 per enrollment or more by adding administrative fees and other extra fees.

Carriers are padding their bottom line from the dole and THAT's where the cash needs to be trimmed (and probably will be in the near future). Of course some of that money that is not used for overhead and claims eventually ends up in the agent's pocket in the form of commissions, bonuses, lead generation, etc.

Once DC starts to squeeze the carriers will (of course) remain profitable but policyholders and agents will see notable changes as well.

Allison has been writing about health insurance since before ACA and also Medicare. She sometimes does a credible job of reporting but also misses the mark more than she should at this point . . . probably her left leaning bias coming through.

How and Where does an MA agent

From the article link . . .

The maximum Medicare Advantage broker commission is $750 per enrollment this year, but plans can pay $1,300 per enrollment or more by adding administrative fees and other extra fees.

Carriers are padding their bottom line from the dole and THAT's where the cash needs to be trimmed (and probably will be in the near future). Of course some of that money that is not used for overhead and claims eventually ends up in the agent's pocket in the form of commissions, bonuses, lead generation, etc.

Once DC starts to squeeze the carriers will (of course) remain profitable but policyholders and agents will see notable changes as well.

Allison has been writing about health insurance since before ACA and also Medicare. She sometimes does a credible job of reporting but also misses the mark more than she should at this point . . . probably her left leaning bias coming through.

$750 is ONLY in California and other high COL states AND ONLY in the First Year. Most of us are $301/$601. What kind of “administrative fees” is this liar referring to?
The only “admin fee” that most receive is the HRA which ranges from $50-110. That is not enough to sway any sale that I am involved with.
If levels higher than GA receive overrides (which she might call “admin fees”), then go after them, not the regular agent who is trying to make a living.

 

[DonP]

How and Where does an MA agent


$750 is ONLY in California and other high COL states AND ONLY in the First Year. Most of us are $301/$601. What kind of “administrative fees” is this liar referring to?
The only “admin fee” that most receive is the HRA which ranges from $50-110. That is not enough to sway any sale that I am involved with.
If levels higher than GA receive overrides (which she might call “admin fees”), then go after them, not the regular agent who is trying to make a living.

I do agree with something . It’s double bs when the fmo makes $250-$300 when I make that during aep . So right now a mapd ( 80% is plan to plan ) pays $ $150 . The fmo still gets his whole yr $250-$300 up front . He’s making 150% on me . That’s insanity .If I didn’t have free leads I’d never be selling non t-65 this time if yr .

 

[InsuranceGuy29]

Just another case of unbelievably stupid people sounding off about things they know absolutely nothing about. Most of the comments here did a good job saying most of the things I would have.

The average agent couldn't give a sh*t less about which plan a client prefers to go with. There isn't enough of a monetary difference to even matter. In some cases, MAPD might make a tiny bit more, and in other cases, a supplement might make a tiny bit more.

This stuff literally doesn't even cross my mind. All the agent cares about is obtaining the business...period. And we don't have to "sell" people on anything. People need the supplement or MA plan.

All we do is literally get calls or voicemails saying "Hi Mr. Agent, I need a supplemental plan....can you help me?" For some reason, some people have it in their heads that we are used car salesmen, when this could not be FURTHER from the truth.

 

[axeman462]

I'll admit, I am biased.

I am biased for the customer to choose me to do business with, instead of the agent down the street.

I literally don't care if the customer chooses MAPD or medsupp. Commissions never come to mind when I am meeting with the customer. I try to do what is right by them, and the rest just kinda falls into place, just because.

But when liberal hacks attack the insurance industry, and broker commissions because they don't understand basic economics, it really annoys me.

 

[somarco]

But when liberal hacks attack the insurance industry, and broker commissions because they don't understand basic economics, it really annoys me.

As mentioned earlier, Allison Bell has been reporting about health insurance for a number of years but still does not understand how the products work. When Obamacare was debated in Congress she authored articles that parroted the politicians pushing for government expansion while claiming the impact on premiums would be nominal.

Gruber did the same thing except he knew he was lying and twisting things in such a way as to gain public support for Obamacare

 

[selfgen]

I'll admit, I am biased.

I am biased for the customer to choose me to do business with, instead of the agent down the street.

I literally don't care if the customer chooses MAPD or medsupp. Commissions never come to mind when I am meeting with the customer. I try to do what is right by them, and the rest just kinda falls into place, just because.

But when liberal hacks attack the insurance industry, and broker commissions because they don't understand basic economics, it really annoys me.

I agree 100%!!
This is what I say as well!!!!