How about those large MAPD commissions?

[Yagents]

This should start a nice heated thread............your entertainment for AEP

https://www.medpagetoday.com/special-reports/exclusives/101229?

— Agent says he would double earnings if he sold MA over Medigap plans to new clients

In a nutshell, because CMS sets agents' MA commission rates, they tend to be much more favorable to those selling MA plans to first-time enrollees than to the agents who would put those beneficiaries in traditional Medicare with a supplemental plan, known as a Medigap plan.

That's the take from Christopher Westfall, an extremely vocal insurance broker who runs Senior Savings Network, who is licensed to sell health plans in 47 states. Westfall told MedPage Today that he's paid roughly twice as much in commissions -- depending on the state and the plan -- for enrolling a new beneficiary into an MA plan for 2023 compared with a Medigap plan.

For example, if Westfall enrolls a newly eligible 65-year-old client from California or New Jersey into an MA plan, he'll earn a $750 commission for that year. But if he enrolls that same client into a Medigap Plan N policy, an increasingly popular choice, he receives 22% of the plan's premium, or $259.80, for the year..........................read more

 

[sshafran]

he receives 22% of the plan's premium, or $259.80, for the year..........................read more

22% on N?

 

[Todd King]

All those "ifs" in there. IF it is a new enrollee...IF the premium for a Med Supp is $XX.

You can also say that IF the premiums for the Med Supp are higher (maybe the client is older), AND, for MA, they aren't a new enrollee...then you make more on the med supp.

Just too many IFs to deal with.

 

[Limozine]

Given the fact that MA plans require a lot more ongoing support from the agent, this shouldn't be a big surprise.

 

[goillini52]

22% on N?

He needs a new upline.

 

[DonP]

80% of mapd wrote is renewal business making $300 . Plus the amount of efforts to keep it vs med sup is 3 times the work . You have to move people e dry few yrs to keep a mapd client overall . If you don't someone else will move them

 

[Evan]

I mean he's 100% not wrong on anything he said...

 

[somarco]

Given the fact that MA plans require a lot more ongoing support from the agent, this shouldn't be a big surprise.

Really?

According to many agents who post here, there is almost no service work needed on MAPD plans, not even running a drug report. Those same agents say their Medigap business requires more time and hand holding. And all that underwriting to move a Medigap client. Who has time for that?

MAPD renewal? Phone it in . . . quite a few back & forth posts on this very thing.

 

[Midlevel]

For example, if Westfall enrolls a newly eligible 65-year-old client from California or New Jersey into an MA plan, he'll earn a $750 commission for that year. But if he enrolls that same client into a Medigap Plan N policy, an increasingly popular choice, he receives 22% of the plan's premium, or $259.80, for the year.....................

Nice example. Take the highest commission State for MA and then a 65 year old N Plan and compare. How about a normal state and he gets 601.00 for an MA with a 301.00 renewal. Med Sup G plan at 130.00/month is around 340.00 1st year and then 92.00 for the PDP. Each year after the MA is still 301.00 (not including small raise each year) and the Med Sup is 340.00 plus 46.00 for PDP for total of 386.00 yearly. After 5 years it's about the same result.

 

[DonP]

Really?

According to many agents who post here, there is almost no service work needed on MAPD plans, not even running a drug report. Those same agents say their Medigap business requires more time and hand holding. And all that underwriting to move a Medigap client. Who has time for that?

MAPD renewal? Phone it in . . . quite a few back & forth posts on this very thing.

That's just during aep . What about the 100's of lost otc and food cards yr round ? How about the 59 calls how come this dentist charged me $300 . Calls and big service work yr round