Medicare is a government sponsored health care program that provides coverage to people over the age of 65 and to people with certain disabilities.
Medicare agents
are paid in different ways, depending on their role within the organization. Agents generally receive commissions based on the price of the products and the amounts for the first year or renewal. In addition, they may be eligible for bonuses if they meet specific sales objectives or other criteria. The health plan company (insurance company) pays Medicare agents a fixed compensation payment when a customer enrolls or renews in the Medicare plan.Insurance companies whose plans help people enroll generally pay commissions to authorized insurance agents. This doesn't necessarily mean that their advice is biased or that it doesn't take your interests into account. A Medicare insurance agency, such as Fair Square, helps Medicare beneficiaries choose and enroll in Medicare plans. Medicare supplement companies have different commission rates for agents, which increase depending on the amount of production an agent or agency has.
They can help you understand the complex rules of Medicare, avoid potential costly fines, and select a plan that truly meets your specific healthcare needs. What you earn from sales of Medicare Advantage and the PDP may be lower, depending on the insurance company and your contract with them. For information on all your options, go to 1-800 MEDICARE or your local state health insurance program. Their goal is to reimburse the agent for time and expenses on behalf of their customer base, so don't feel bad about calling on the phone if you have any questions. Product type and contract aren't the only factors affecting Medicare agents' fees.
Agents who sign a commission assignment agreement should be careful, since, depending on their contract, their upstream line could be left with their renewals should they decide to leave. A licensed insurance agent who is truly on your side will appreciate these questions and provide you with clear and satisfactory answers. When you're new to Medicare, Advantage plans pay agents much more than Medigap plans (almost twice as much). There's more to the story, and it's important that you understand the full picture so you can navigate Medicare with confidence.
These regulations include commission limits to prevent authorized insurance agents from unnecessarily requesting higher cost plans. Often, agents have to promote, organize seminars and maintain websites, in addition to a variety of other expenses that are part of the business. For Medicare supplement plans, the commission is usually a percentage of the plan's premium, meaning that the authorized insurance agent's payment would receive a higher percentage if the plan cost were higher.
