For agent use only. This information is subject to change.
Our March Office Hours call sparked great discussion, with agents asking thoughtful questions about Medicare commissions, carrier updates, and diversification strategies.
We’ve compiled the most frequently asked questions from the call, along with answers from our expert hosts, into the Q&A below as a helpful resource you can revisit anytime.
*Note: The industry is always evolving and changing. Please remember to verify current commissions and plan details with us and stay updated on the latest news.*
Q1: You mentioned $347 when discussing Humana’s new commission rules. What does that number represent?
Answer: Each year, CMS sets a maximum allowable agent commission for Medicare Advantage plans. This year, the maximum is $347.
With that said, carriers are not required to pay the maximum:
- Some carriers pay $347
- Others have chosen to stay at $307
- Some pay reduced commissions depending on the product
- Certain plans pay no commissions at all
As we know, commissions are no longer uniform across the industry. Each carrier decides what it will pay, making it important to verify compensation before offering a plan to avoid unwanted surprises.
Q2: Are Humana’s commission changes nationwide?
Answer: Yes, Humana’s commission changes apply across all states.
They also confirmed that approximately 72 plans are non-commissionable, though many of these were already non-commissionable before the official announcement. In IntegrityCONNECT, non-commissionable plans are clearly marked, which helps reduce confusion – especially since a plan may be commissionable in one county and not in another.
Q3: When you said Humana had a “monster year,” did you mean profitable growth?
Answer: Yes, “monster year” refers to “membership growth”.
Humana is the second-largest Medicare Advantage carrier nationwide, and their membership grew by approximately 25%, which is significant growth by any industry standard.
Q4: Is the True-Up Commission over $600?
Answer: Approximately…remember, total commission is made up of initial commission (about half) and true-up commission (the other half). Together, they roughly equal $600. However, both portions are now prorated, which means the actual amount paid will be lower.
Q5: Do you expect further commission reductions from Humana or other carriers?
Answer: There are definitely headwinds in the short term, and more changes may come. That said, most experts agree that the five-year outlook for Medicare Advantage remains strong.
Key points:
- Short-term pressure is expected as carriers adjust
- Long-term growth remains intact
- Diversification is becoming critical
We’re seeing increased discussion around not being a one-product agent but rather a one-stop shop agent. Adding ancillary products and other lines of business helps protect income if commissions are reduced again.
Q6: If a Humana plan was commissionable when written but later became non-commissionable, do commissions stop?
Answer: No, those commissions are grandfathered.
If the plan was commissionable at the time of enrollment, you will continue to receive commissions. The change only affects new enrollments.
Q7: Is it a good idea to offer Hospital Indemnity or Cancer Plans to people with only Original Medicare?
Answer: Absolutely!
Clients with Original Medicare have:
- No out-of-pocket maximum
- Ongoing responsibility for 20% of costs after deductibles
Hospital Indemnity and Cancer plans can help offset these gaps and provide valuable financial protection.
You can view all of our Hospital Indemnity plans here.
You can view all of our Cancer plans here.
Q8: Does the Medico Cancer Plan pay on diagnosis?
Answer: Yes, the Medico Cancer plan pays upon diagnosis.
- Cancer in situ is typically paid at 25%, which is standard across most carriers
- All other covered cancer diagnoses pay according to the policy benefits
Q9: How does Medico’s Short-Term Care policy compare to competitors?
Answer: It’s very competitive – as are many carriers in this space.
Each company has unique features that may appeal to different agents and clients. For instance:
- GTL remains a favorite for many agents
- Wellabe stands out due to added outpatient prescription drug benefits
- Aetna is very competitive on pricing
- Cigna offers a hospital indemnity plan with no restoration period
Every client is different, with their own needs, preferences, and experiences. As an agent, it’s your job to find the carrier and plan that best fits those individual needs. No single carrier or plan is better than the rest – it all depends on what works best for each client.
Q10: Is Blue Cross Blue Shield of South Carolina now offering Guaranteed Issue for Medicare Supplements?
Answer: Yes, as of March 1, Blue Cross Blue Shield of South Carolina is offering Guaranteed Issue Medicare Supplements.
Agents receive full commission on these enrollments. Therefore, for agents in South Carolina, this could be a major opportunity and potential game-changer in that market.
Please refer to our March Office Hours blog recap for all topics discussed during the call.
For agent use only. This information is subject to change.
Office Hours with Tidewater March Recap
Previous Post
