Brokers commissions for Medicare Advantage Plans will be allowed to increase by a maximum of 0.81% in 2010 from the maximum Fair Market Value of brokers commissions which was issued by CMS on December 24th, 2008. In most states, the maximum commission for an initial commission was $400 and the maximum replacement commission was $200. The 0.81% increase will raise thes commissions by $3 and $2, respectively.
In a slightly more positive note, Medicare Advantage Organizations which set their broker commissions in 2009, will have the option of refiling their commissions for 2009 effective dates starting with July 1st, 2009. Some of the companis we represent had filed commissions lower than the maximum commission issued by CMS and it didn’t seem as though they would have the chance to raise their commissions in the future to be competitive with other plans which filed higher commissions levels. I’m hopeful that these plans will now take advantage of the chance to make their commissions more competitive (as long as they keep their commissions within the CMS FMV range).
[...] 10, 2009 by Craig Over the weekend, I blogged about this topic and promised to post the full [...]