Referral Fee and MAPD ?

[Tim Resnick]

Hi Friends,

Newby here and wanted to ask about 'Paying a Referral Fee' to a licensed agent for a lead that closes on medicare advantage plans.

I know there are tricky rules to this product and just wanted to know if its ALLOWABLE?

Can i pay another licensed Health Agent a referral fee if i close the client on a medicare advantage plan?

~Thanks

 

[somarco]

I have a friend that takes care of MA referrals for me. I have never asked for anything in return other than to let me know if he could help them.

There used to be a number of referrals every year but that has dwindled to almost nothing. When I was sending people on a regular basis he would send a gift card to a nice restaurant.

If there was something wrong with this arrangement he would not have done it.

 

[Devin01]

CMS allows a $25 referral fee for a PDP and a $100 referral fee for an mapd

 

[springbokhouston]

CMS allows a $25 referral fee for a PDP and a $100 referral fee for an mapd

That is correct Devin. The referring agent also has to be health licensed in the state for it to be allowable. In other words you can't pay a referral to a Life Only agent.

 

[Tim Resnick]

Thanks guys.

(i supposed it doesn't matter if they are MAPD certified with the companies, just as long as they are licensed)

 

[somarco]

Depends on how your fee is structured.

If strictly for a referral, not contingent on a sale, license not needed.

If contingent on a sale a license may be required (depending on your state rules). If the fee can increase or decrease depending on the premium/commission involved, then the individual should be licensed.

 

[Tim Resnick]

Depends on how your fee is structured.

If strictly for a referral, not contingent on a sale, license not needed.

If contingent on a sale a license may be required (depending on your state rules). If the fee can increase or decrease depending on the premium/commission involved, then the individual should be licensed.

Thats interesting. I wonder how you could structure an agreement that would not be contingent upon a sale?

 

[jdlash]

Thats interesting. I wonder how you could structure an agreement that would not be contingent upon a sale?

Any time you send someone over to me, I give you a $10 gas card, etc... no matter if I can write them, or not. Put in whatever you wish for the referral as long as it is within the legal limits....

 

[policywunk]

CMS allows a $25 referral fee for a PDP and a $100 referral fee for an mapd

Of course the agent getting the referral is not allowed to call consumer.

 

[kgmom219]

Wouldn't this be state specific?

In TX, I can't do any monetary reimbursement for a sale UNLESS the other person is licensed in TX for health/life.