Missed You Guys....

[kgmom219]

College Graduation for the G in KG-Cruise-G's Wedding-G started working for the family business-Broke my Wrist-Surgery. Super fun! But I love my new daughter in love.

Lots to unpack lately.

Med Supp Increases suck. Great article here for client explanations. The drug is covered under Part B. So that's nice.: [EXTERNAL LINK] - Medicare expects to spend $3.5 billion on new Alzheimer’s drug in 2025

1500 pages out of CMS.
1. MAPD commish increase
2. PDP commish increase. (I'm a little concerned on more Part D's stopping commissions like SS Smart)
3. Marketing money for MA and PDP gone. (But not Med Supp....)
4. Biosimilar automatic substitutions (I need to dig in on this more)
5. Overrides are gone for FMO
6. D-SNP can change monthly if its a state Medicaid contract
7. Duals-Monthly (currently quarterly) changes allowed
8. SNF appeals (I need to dig in on this more)

The "2%" increase to MA is crapola. They are taking a huge hit in 2025 with the $2K Drug OOP, Risk Adjustment changes, SNF changes. I'm agreeing with Don on this one. 2025 MAPD will see benefit changes on the "extras", higher premiums, etc. If you have a large book of MAPD, buckle up.

Or you can be me. I still hate MAPD. I already follow all the rules, for Part D and my handful of MAPD people. But if you are currently on MAPD and can't get Med Supp, you need a review. And an agent. That agent is going to be KG. DAMNIT. If anyone has any marketing ideas, send them over. I haven't done any marketing in years.

 

[somarco]

agreeing with Don

Did Hell freeze over???

 

[GoPokes]

Ryan Kimble of Integrity, was on a video this week at the Medicarians event, saying that the new rules will prevent non-commissionable plans moving forward. I have not seen the verbiage that says that, but it was nice hearing it...

It is a bit interesting how the MA organizations gave the FMO a bag of money and told them to give it to the agents, as "marketing dollars" and now the FMO is in the hot seat.

Edited spelling (Medicarians)

 

[kgmom219]

Ryan Kimble of Integrity, was on a video this week at the Medicarians event, saying that the new rules will prevent non-commissionable plans moving forward. I have not seen the verbiage that says that, but it was nice hearing it...

It is a bit interesting how the MA organizations gave the FMO a bag of money and told them to give it to the agents, as "marketing dollars" and now the FMO is in the hot seat.

Edited spelling (Medicarians)

It says the exact opposite. I’ll find the page number

 

[Chazm]

3. Marketing money for MA and PDP gone. (But not Med Supp....)

5. Overrides are gone for FMO

Or you can be me. I still hate MAPD. I already follow all the rules, for Part D and my handful of MAPD people. But if you are currently on MAPD and can't get Med Supp, you need a review. And an agent. That agent is going to be KG. DAMNIT. If anyone has any marketing ideas, send them over. I haven't done any marketing in years.

3) that’s a hot take. Could insurance companies just say, hey, here’s $3k to market more med supps? I bet you’re right and that’s an easy back door for marketing money.

5) FMOs will still make lots of overrides on med supps, life, annuities, etc. The dumb ones that only focused on MAPD will suffer.

This AEP, I can nearly guarantee that near zero of my clients will move from a MAPD to med Supp. I’ve had a couple of years when MAPD got worse from the previous year. But never have I seen such med Supp premium increases while at the same time PDP plans go to complete crap.

 

[somarco]

MA carriers get $$$ from CMS . . . Medigap carriers get $0. Don't expect Medigap carriers to hand out $$$ for marketing. Everything "extra" comes in the form of leads (sometimes free but almost always with the expectation of writing new biz) to keep the "free" leads coming.

And there will still be production bonuses based on new business.

Your market is unique because it is God's waiting room and carriers pump $$ into the state plus offering plan designs that are not like plans offered in other states.

California and AZ also have targeted plans & bonus bucks because of the number of gray panthers in those states.

If MA carriers bypass the IMO and offer "marketing" money to agents by guess is there will be some kind of accountability (similar to an expense account) to verify the agents are using the $$ for marketing and not just pocketing it as free cash.

 

[Chazm]

MA carriers get $$$ from CMS . . . Medigap carriers get $0. Don't expect Medigap carriers to hand out $$$ for marketing. Everything "extra" comes in the form of leads (sometimes free but almost always with the expectation of writing new biz) to keep the "free" leads coming.

And there will still be production bonuses based on new business.

Your market is unique because it is God's waiting room and carriers pump $$ into the state plus offering plan designs that are not like plans offered in other states.

California and AZ also have targeted plans & bonus bucks because of the number of gray panthers in those states.

If MA carriers bypass the IMO and offer "marketing" money to agents by guess is there will be some kind of accountability (similar to an expense account) to verify the agents are using the $$ for marketing and not just pocketing it as free cash.

That’s not true. UHC gave me $2k last AEP to market for med supps. They specifically said they aren’t giving it to me for MAPD. My Cancun hard rock trip in 2 weeks? Based off of med supps as well.

 

[DonP]

That’s not true. UHC gave me $2k last AEP to market for med supps. They specifically said they aren’t giving it to me for MAPD. My Cancun hard rock trip in 2 weeks? Based off of med supps as well.

Avg med sup commission is 21-23%. Fmo ‘s make around 7% overrides . So avg premium $140-$160 . So they make around $9 -$11 a month . Far less than the $20 a month or so they make on mapd . But carriers(med sup) and fmo’s have been pivoting very hard to med sups ,fe ,life,annuities and hospital ,dental and cancer plans . Humana started pivoting the hardest over a yr ago as there med sup business was tiny and they had by far the biggest exposure to mapd (77% of there revenue ) .But med sup agents in same boat as mapd agents . Chaos in med sup premium increases and part d premium increases . Agents with big books wether mapd or med sups will be playing defense most of aep to move clients around .

 

[rmhaire]

That’s not true. UHC gave me $2k last AEP to market for med supps. They specifically said they aren’t giving it to me for MAPD. My Cancun hard rock trip in 2 weeks? Based off of med supps as well.

Actually what @somarco said is 100% true.

Most companies offer $$$ for production. FE, Life and everything else. Usually it's something like a small lead drop for a certain number of cases written per month.

 

[somarco]

UHC gave me $2k last AEP to market for med supps.

Things are different in the sunshine state . . . + UHC is the 800 lb gorilla and can do anything they want. And again, that is THEIR money, not $$ from CMS

Did other Medigap carriers offer marketing money?