Newby to MA --- beginners question ?

[CJ Tibbs]

HI all,

I'm still doing PC but I have a MA question hoping someone can answer.

I know when someone turns 65, and an agent signs them up for MA, they get paid full commission. AND they also get a renewal commission.

• What happens when that same person turns 66 and you change them to another carrier ... does that Change count as a Brand New Signup (and you get the brand new commission amount)?

Thanks for your input...

 

[sman]

HI all,

I'm still doing PC but I have a MA question hoping someone can answer.

I know when someone turns 65, and an agent signs them up for MA, they get paid full commission. AND they also get a renewal commission.

• What happens when that same person turns 66 and you change them to another carrier ... does that Change count as a Brand New Signup (and you get the brand new commission amount)?

Thanks for your input...

No it doesn't count as a new signup. Beyond their first enrollment you will get the renewal commission for any subsequent enrollment (or if they stay on the same plan).

 

[DonP]

When they're 65 you get full true up commissions of $626. Whether you Sign then up in Jan or Dec . Let's say you wrote a Dec 1st person Turning 65 . Even though it's only 1 month until the yr 2026 you make the full $626 commission . In Jan you start making the $26.08 renewal commission . For instance if you write a mapd to mapd plan right now you only $188 . A t-65 pays $626 . You right a mapd to mapd plan for sept 1 you make only about $125 . A t-65 you make $626 . As for your question . When you rewrite that person in 2026 you only make the renewal of $313. Rewrite a different mapd to mapd is considered a renewal . There's no financial incentive to rewrite a plan. Writing t-65's is much more lucrative than writing mapd to mapd . That said the competition to write t-65's is crazy as they get blasted day and night . The t-65 mkt has much greater persistency, people are in better health as there younger and loyalty to the agent us much greater as your the only agebt they've ever known

 

[CJ Tibbs]

Hmm... sounds like there's as much (or more) money to be made with supplements.

 

[sman]

Hmm... sounds like there's as much (or more) money to be made with supplements.

Depends. Over the life of a client (assuming they remain your client for 10+ years), you're likely to make more with MAPD since the commissions don't reduce drastically after the 6th year. It's probably about breakeven at the 6 year mark. But beyond that, unless you move the Med Supp client to a new carrier (assuming they can qualify and it saves them money), the MAPD wins out beyond that from an income perspective.

With that said, if you are approaching a client and advising based on what makes you the most money, don't even start in the business. Just do what is in the best interest of the client and you can have a long and successful career.

 

[CJ Tibbs]

Depends. Over the life of a client (assuming they remain your client for 10+ years), you're likely to make more with MAPD since the commissions don't reduce drastically after the 6th year. It's probably about breakeven at the 6 year mark. But beyond that, unless you move the Med Supp client to a new carrier (assuming they can qualify and it saves them money), the MAPD wins out beyond that from an income perspective.

With that said, if you are approaching a client and advising based on what makes you the most money, don't even start in the business. Just do what is in the best interest of the client and you can have a long and successful career.

Thank you for posting.

Picking what's best for insured is the easy part. Making 'a living' selling insurance is the hard part.

It appears to this newby that MA has lots of rules and tests to pass every year. It also appears that the gov. has agencies actively looking to 'fine' agents for the slightest infraction (their sole purpose). Funny how the Large Carriers are able to circumvent these rules.

Med Sups can be sold all over the USA without the strict marketing rules of MA.

Do you know of any agents who are able to keep a book of 1-2k 'MA clients' without violating CMS rules?

 

[Newby]

Thank you for posting.

Picking what's best for insured is the easy part. Making 'a living' selling insurance is the hard part.

It appears to this newby that MA has lots of rules and tests to pass every year. It also appears that the gov. has agencies actively looking to 'fine' agents for the slightest infraction (their sole purpose). Funny how the Large Carriers are able to circumvent these rules.

Med Sups can be sold all over the USA without the strict marketing rules of MA.

Do you know of any agents who are able to keep a book of 1-2k 'MA clients' without violating CMS rules?

You would have to shoot somebody to bring CMS's attention on yourself. Once you're in the business for a while, you'll wish they had more people enforcing those rules.

 

[CJ Tibbs]

You would have to shoot somebody to bring CMS's attention on yourself. Once you're in the business for a while, you'll wish they had more people enforcing those rules.

Thank you Newby.

Here's the latest list i could find on CMS Actions...

Part C and Part D Enforcement Actions | CMS

Enforcement Letters

www.cms.gov

 

[sman]

Thank you Newby.

Here's the latest list i could find on CMS Actions...

Part C and Part D Enforcement Actions | CMS

Enforcement Letters

www.cms.gov

Yeah those are pretty much carriers and care centers for the elderly. They aren't enforcements against agents. If you, as an agent, break the rules and get caught, you likely just lose your contracts with the carriers and maybe the ability to offer MAPD and PDP. If it's egregious, you could get fined and possibly jail time.

It is true, there are hoops one must jump through in order to offer MAPD and PDP. Some find the juice isn't worth the squeeze. My view is that the senior is going to choose one of the two options (Med Supp or MAPD), if I'm going to spend the time to review options with them, I want to walk away with the sale. Some have decided to only work the Med Supp market and I find no fault in that. Their life is much easier during AEP. Although some go the extra mile and help their Med Supp clients with PDP plans (without pay) so they are definitely busier during AEP than those who don't help their Med Supp clients with PDP.

If you aren't going to help them with PDP, just know that someone else will and it could be an agent who could take your Med Supp business from you. I say that to say, if at all possible, help your Med Supp clients choose the lowest cost PDP option.

 

[DonP]

Yeah those are pretty much carriers and care centers for the elderly. They aren't enforcements against agents. If you, as an agent, break the rules and get caught, you likely just lose your contracts with the carriers and maybe the ability to offer MAPD and PDP. If it's egregious, you could get fined and possibly jail time.

It is true, there are hoops one must jump through in order to offer MAPD and PDP. Some find the juice isn't worth the squeeze. My view is that the senior is going to choose one of the two options (Med Supp or MAPD), if I'm going to spend the time to review options with them, I want to walk away with the sale. Some have decided to only work the Med Supp market and I find no fault in that. Their life is much easier during AEP. Although some go the extra mile and help t

Breaking the rules you lose your contract? I'm under a guy that has 60 agents . Some real life situations . One guy got 5 founded complaints in 5 weeks . The 5 complaints said they were unaware somebody signed them up for a plan. He didn't lose his contracts . Just recently 2 separate agents during aep never contacted there clients and moved them to better plans without even calling them . Little did these agents know their clients were deceased 9 and 11 months . Oddly enough one of the plans went through . It took united 6 months to send them Grievences . Amazingly neither agent lost their contract. That was stunning . I've asked regionals of many carriers if many people lose their contracts. All said it's extremely rare. Yes its a big concern a carrier could easily screw you and term you for something little and steal your renewals .