New Senate report on agent commissions

[DonP]

One of 2 things happens now. Mapd carriers have there bids in right now and most are approved by mid June . With this extra money they either redo the plans to make them better or they pocket the money as more profit . Also The lawsuit taking away marketing money and overrides is still pending . I expect even a wilder aep this year as 1000's and 1000's Aca agents leave that space and enter Medicare for their pot of gold

 

[sman]

One of 2 things happens now. Mapd carriers have there bids in right now and most are approved by mid June . With this extra money they either redo the plans to make them better or they pocket the money as more profit . Also The lawsuit taking away marketing money and overrides is still pending . I expect even a wilder aep this year as 1000's and 1000's Aca agents leave that space and enter Medicare for their pot of gold

My bet is there will be one or two carriers (likely not the big 3), who will redo their plans to try and gain market share. The others are going to pocket the money.

This announcement has caused the insurers stock to jump pre-market. Looks like Humana is the biggest winner of the big 3 (up 18% in pre-market).

 

[EckoRomeo]

I expect even a wilder aep this year as 1000's and 1000's Aca agents leave that space and enter Medicare for their pot of gold

I think this AEP will be more calm. No one is going to make any dramatic changes in the current environment.

 

[DonP]

My bet is there will be one or two carriers (likely not the big 3), who will redo their plans to try and gain market share. The others are going to pocket the money.

This announcement has caused the insurers stock to jump pre-market. Looks like Humana is the biggest winner of the big 3 (up 18% in pre-market).

I'm watching that . The stocks up huge . I'm hoping it takes a lot of plan terms off the table . I agree the big 3 have so much good will and name recognition they won't chase business .They have stockholders were they make much more money with increased stock prices .

 

[Special Agent]

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.

please provide link to waste fraud and abuse that was specifically cut. Documents or testimony in writing or in hearings preferred? I haven't found any.thx

 

[InsuranceGuy29]

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.

Historically? Yes. Under Biden and the last 4 years? Absolutely not.

That's why insurers cut a bazillion plans in a bazillion different areas and they're consolidating and selling off business.

Any President Trump has been signing a million different executive orders and DOGE has been saving taxpayers money left and right.

Do I have the exact numbers in front of me? No. But you don't need numbers for common sense.

Everything they are doing right now will result in immense savings in the program.

 

[Evan]

One of 2 things happens now. Mapd carriers have there bids in right now and most are approved by mid June . With this extra money they either redo the plans to make them better or they pocket the money as more profit . Also The lawsuit taking away marketing money and overrides is still pending . I expect even a wilder aep this year as 1000's and 1000's Aca agents leave that space and enter Medicare for their pot of gold

Why would ACA agents be moving to Medicare? If your good at ACA you make quite more then in the Medicare field.

 

[MedicareWAA]

Historically? Yes. Under Biden and the last 4 years? Absolutely not.

That's why insurers cut a bazillion plans in a bazillion different areas and they're consolidating and selling off business.

Any President Trump has been signing a million different executive orders and DOGE has been saving taxpayers money left and right.

Do I have the exact numbers in front of me? No. But you don't need numbers for common sense.

Everything they are doing right now will result in immense savings in the program.

2023 was when Biden was in office. The industry was very profitable. It was profitable before 2023, and it's still extremely profitable. It will remain that way unless Congress reinvents Part C … unlikely.

Aside from WellCare, some plans went non commissionable because those carriers F'ed up their bids on those plans. In the case of WellCare, they wanted to take share. It was discussed on two of their earnings calls.

Cigna sold its Medicare business because they never found a way to make it matter. The business never scaled like their other business lines. So they sold it - for a profit - and kept the PBM contract to boot.

I don't disagree that that FWA will save taxpayers money in the future. But it has nothing to do with the rate announcement. The calculation is very complicated and also open to some subjective interpretation by whatever administration is in charge at the time.

it's very difficult for Part D to totally tank a carrier because there are risk corridors that limit their losses and limit their gains. For MA plans, the risk of a lopsided Part D benefit is mostly that it becomes a magnet for terrible risk. See earlier comment about bids.

If a carrier tells us their MA business is just scraping by, they're either liars or they don't know how to run a managed care company very well.

 

[annon123]

it's very difficult for Part D to totally tank a carrier because there are risk corridors that limit their losses and limit their gains. For MA plans, the risk of a lopsided Part D benefit is mostly that it becomes a magnet for terrible risk. See earlier comment about bids.

Not to mention they can change their formulary mid year if they want to if they are finding they made some "miscalculations".

 

[axeman462]

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.

you and me both brother. *** doom and gloomers on here been preaching Armageddon for months just don't get it.