I don’t want to get too excited yet, but it appears that CMS will be reversing it’s guidance on broker commissions on Medicare Advantage sales which replace Original Medicare with a Stand Alone Prescription Drug Plan.
I’m hearing that CMS will be suspending it’s June 5th, 2009 guidance where they held that “renewal” commissions were to be paid on these replacements. CMS will be holding additional meetings on the subject and issuing additional guidance in the near future.
Further, CMS will be reiterating that for 2010, Medicare Advantage replacement of Original Medicare with a PDP will be considered “Initial”. (This was one of my primary arguments to CMS that payments were inconsistent between 2009 and 2010, so it’s good news that they are clearly stating again that 2010 will be paid the way we all expected.)
I expect that we’ll be hearing the “final word” from CMS on 2009 broker commissions involving the replacement of Original Medicare with a PDP soon (probably next week).
Thanks to everyone who helped out on this issue. As you know, I spent quite a bit of time researching the underlying CMS guidance and Federal Code of Regulations and communicating back and forth over the past 2 weeks! I’m cautiously optimistic that CMS has heard these arguments and will issue guidance consistent with Federal Code of Regulations 422.2744(a)(3) and we will be receiving initial commissions on Original Medicare with PDP replacement soon!!