Humana gives top agents money directly and the fmo gets money at I'd say $200 an app . I'm talking hard core fmo's that do 10-50k apps an yr or are they're under integrity or Amerilife. United's by far the toughest for an agent to get money directly . Depends on your state too . I and many agents i know have had almost no luck getting money directly and over the yrs . Aetna in my area will not give a penny directly to the agent but some states they will . It's all about forming relationships with your regionals . Your fmo should be giving you straight $100 an app . What Jim wright is saying about marketing money is not correct with a high volume Medicare fmo. There's no bs co op needed . They should be giving you $100 per app up front . Example I'll do 200 apps aep give me $20k for marketing money . Again this is April 4 2025. its very possible with all the chaos in mapd that carriers pull back huge in marketing money and possibly overrides
New Senate report on agent commissions
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Humana and Cigna pay it directly
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Packerland
Guru
- 592
$200 per application for newcomers to Medicare Advantage is standard in certain Metro markets. Agent-level overrides are also common. However, some FMOs use this as a bait-and-switch tactic, not earning upfront money but relying on retention over a few years to generate overrides.
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I don't think there's too much to worry about. This just out from Oz raise in Medicare Advantage to insurers.
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Good news! Party on!
InsuranceGuy29
Guru
- 914
The intent of this post isn't to gloat or pat myself on the back, but I told you naysayers that Trump and his administration would restore this program and bring sanity and common sense into play again.
Fact of the matter is, without this boost, this program would not survive. Most of these companies were heavily in the red since Biden took over.
You can't run losses like this for many consecutive years. All the cuts to Medicare beneficiaries and us brokers/advisors were a direct result of these cuts and overall terrible mismanagement by Biden.
They eliminated a lot of fraud, waste, and abuse and are now using the money to bolster the program, which is a win for Medicare beneficiaries and us brokers.
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MedicareWAA
Guru
- 574
Medicare Advantage is the insurance industry's most profitable line of business ($1,982 average annual gross profit per member in 2023 - far more than other lines) and the current administration hasn't been in office long enough to eliminate any meaningful amount of FWA.
It's good for brokers that the rate increase is higher than expected, but MA has been and will remain a cash cow for insurance companies.
Let's wait and see how the $2k MOOP on drugs impacts that figure. No doubt it will still be profitable, but clearly carriers saw something this year that caused them to stop paying commissions on several plans.
I doubt the percentage of MAPD's that went noncommissionable amounted to 3% of all plans. Only a few Cigna ppo's went uncommissionable in my market, and I had written exactly 0 of those plans before.
The 2k cap has been known since the the IRA passed in 2022. It's was the low increase in payments on top of the 2k cap that rattled the carriers.
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