What MA Renewal Commissions Really Mean

Typically, an Agent has earned a good commission from the initial enrollment with no renewals, and not much of an incentive to keep business on the books past the first year. The new CMS rules about first year and renewal commissions could put you on a solid base "salary" for years to come.

Example using fictitious Company Z:

In 2007, an Agent receives $600 first year commission for each MA enrollment. No renewals for any remaining years the beneficiary stays on the plan.

In 2008, the same Agent receives $250 first year commission and $200 per year for years 2,3 4,5 and 6. Total compensation over 6 years is $1250! More than double the first year commission in 2007 alone!

Do the numbers with the companies you represent and see how quickly 100 enrollees this year can add up to thousands in renewals for the next 5 years.

In the new playing field everyone wins. Less incentive for unscrupulous agents to churn business to get new first year commissions, and those that were in it for the quick "hit" commissions will go elsewhere - like bill collecting.

This leaves the dedicated MA agent a more steady base upon which to build.

Medicare Advantage: What YOU Need to Know...

·         Medicare Advantage plans offer coverage with little or no monthly premiums.  In some instances the client can actually receive money back every month! 

·      When a beneficiary enrolls in a Medicare Advantage plan they are still part of the Medicare Program and retain all of their Medicare rights and protections.

·      When joining a Medicare Advantage plan a beneficiary will continue to receive all their regular Medicare-covered services and will also have access to additional services that neither Medicare Supplements nor Original Medicare can provide. 

·      Medicare Advantage plans can offer prescription drug coverage whereas Medicare Supplements do not. 

·      Medicare Supplement premiums continue to rise while the commissions continue to shrink.  At the same time most Medicare Advantage premiums are at or near $0 and both commissions and renewals continue to grow!

·      With a Medicare Supplement the client must pay to have health care access whether they use it or not!  With a Medicare Advantage plan the client only makes a small co-pay when they use the services.

·      A client can enjoy having the peace of mind knowing that with a Medicare Advantage plan that they are guaranteed that even in a time of poor health they won’t have to pay out more than $4510 in any calendar year.  With a Supplement the client is guaranteed to have to pay out $1500 to $1800 a year before they receive any kind of service. 

·      With a Medicare Advantage plan the client only has to answer ONE health question; Do you have End-Stage Renal Disease (Kidney Failure)? 

• Note: We even offer plans for folks that answer "Yes" to this question.

Companies We Represent