I’m beginning to see final approvals. Information is a bit sketchy right now, but from what I can gather $500/$250 is the maximum allowable amount by CMS (this was in California, however). Thanks to Rick in California for supplying me with this information!
When final approvals come through, they will be retroactively applied to all AEP enrollments. For example, all cases written from 11/15/08 through 12/31/08 for a 1/1/09 effective date will be paid at the rate CMS approves, not necessarily the rate the company filed with CMS.
I called coventry and they don’t even have the final decision from the govenment. I have a feeling we won’t see anything until the annual open enrollment period.
This whole medicare advantage compensation issue is a lot of garbage. We as agents have contacts with insurance companies – licensed under State Laws – and subject to contract law.
CMS may have some say in setting commission levels (a fact I disagree with but a fact none-the-less) but they have NO say over state contract law.
Our contracts state a certain payment for new and a certain payment for renewal (or re-writes). It is known AT THE TIME OF ISSUE whether it’s “new” or “renewal”. CMS has no legal authority to interfere with state law and contracts once they have approved the levels. I say that Insurance Companies are simply hiding behind some ridiculous ruling (that does not have the force of law) to keep from paying commissions due.
If it is just the renewal commissions we are going to receive, we would all be working for less than minimum wage – due to the high cost of marketing, also due to CMS.
I say that a good law firm needs to file a class action over this issue and let’s allow the courts to decide if CMS has the legal authority to control WHEN we are paid – in effect overriding our contracts and state law.
Hi. How many are you signing up a month?
12/month for me.
Hope I can do more.
It is hard to express how I feel at this point. As others have said it was a long hard AEP. We all worked hard and did a good job for our clients. It was frustrating with all the last minute regulations, new expenses due to the regulations and then not knowing how much our compensation would be. All very unsatisfying as far as a professional career.
We are thankful to Craig for this blog, I can’t imagine going through this season without having this blog to check into and get real info and opinions from real people. Merry Christmas to each and every one of you.
I am busy confirming enrollments to ensure all of our hard work is ACTIVE and in place and then hopefully the final approved #’s will be formally announced and then PAID. Hard world when you have every Large Corporate bailed out, every politician paid increases, expenses up and the independent small business person SCREWED on their work and comps. Again hard to express.
Imagine that….Calipornia getting higher commissions. Does that have anything to do with Pete Stark? I know something will happen to the individuals that are destroying the middle class with these rulings. What goes around comes around.
I wish I wasn’t so deep in this business, or I would just walk away. I would go and start a ponzi scheme, or just really screw people and run for congress.
Hopefully, Obama will get his way and end these plans. We can then sell our clients crappy med sup plans. At least we will know what we are getting paid.
Merry Christmas.