Medicare FMO companies
Because there are so many Medicare FMO companies to choose from agents need to carefully consider what each one has to offer before they choose one to contract with.
We will start by explaining what an FMO is. FMO stands for Field Marketing Organization. These organizations specialize in the support of independent insurance agents as well as agencies. They form partnerships with insurance carriers to provide marketing, sales and service resources to their downline agents/agencies.
The difference between an FMO, IMO & NMO
IMO or independent marketing organization operates similarly to an FMO, the difference is the compensation level. These terms are both top-tier levels of carrier hierarchies. Some marketing organizations use these terms interchangeably.
Just to make things more confusing, we will throw in the term NMO, this stand s for National Marketing Organization and is another top of hierarchy level. For many carriers this is the top level of contracting. Reaching the NMO level as with the FMO & IMO levels is no small achievement. Because each carrier has its own hierarchy levels, it can be tricky to define these terms. In the world of Medicare, some FMOs are not actually the top of hierarchy.
Find out why you should consider Crowe for your FMO
Other contracting levels
Some of the other contracting levels are Street, GA, MGA & SGA the name of the level depends on the carrier and each one signifies a level in contracting that provides higher overrides. If you have an agency, you need to decide how you pay your downline agents. They can receive full street commissions directly from the carriers or you can decide to contract agents as LOA and you can make any type of payment arrangement that both parties can agree on.
CMS currently has a proposal in the works that may change the way the entire industry is structured. The proposed rule we are talking about is CMS-4205-P. This rule could stop agents from using FMOs for product distribution and leave them without a support system.
Watch a video to see what this proposal could mean for the Medicare business
What does an FMO do
FMOs play a crucial role in providing support to their agents. Here are some of the ways an FMO provides this support:
- FMOs should provide training to their downline agents. Agents at every level need some type of training whether it is for the basics, product updates and additions compliance, or sales. Agents need to stay up to date on several areas, so they can provide clients with the best plan options. Crowe offers agents many types of training that include webinars, zooms, our website and YouTube channel as well as one on one phone consults and in-person meetings.
- They need to have partnerships with several local carriers that ensures their downline have a large variety of products to offer.
- FMOs provide help with contracting that make the entire process easier than trying to get it done on your own.
- Agents must be complaint with all CMS’ rules and regulations; therefore, it is important that FMOs make sure their downline agents are updated and equipped to conduct themselves in an ethical way. Click here for tips to pass the 2024 AHIP..
- The top FMOs invest in up-to-date technology and tools that make sales a smooth process for their agents. We offer online quoting and enrollment tools that include both Sunfire and Connecture.
- One important element in Medicare sales is marketing. An FMO offers tools that include marketing dollars, lead generation programs and provide help to agents in any way they can so they reach their full potential.
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How to choose an FMO
Because there are so many FMOs who want to contract agents, it can be difficult to choose one. It is important that agents ask questions, so they are comfortable with their choice and do not need a release. Be sure the FMO offers the programs you feel will provide the best guidance for you. It is also important to discuss how you are paid. If you receive full street direct from the carrier or if you will be LOA.
Do you want to ensure you own your book of business or are you comfortable writing and building someone else’s book? Do they offer the most competitive carriers in your area, so you can provide clients the best options possible?
Does the FMO offer marketing money, lead money and guidance on how to make sales and maintain your book of business? Do they provide free tools to help you conduct your business in an efficient manner.
As you can see, there are many things to consider when choosing an FMO. This is a decision that needs to be considered carefully before you sing on the dotted line.
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Medicare FMOs play a pivotal role in the success of insurance professionals by helping them navigate the complexities of Medicare sales. By providing comprehensive support, training, and access to a variety of insurance products, FMOs help agents to better serve their clients and thrive in the ever-evolving Medicare market.
Choosing the right FMO is an important decision that can significantly impact an agent’s career. This means, it is essential to evaluate all the options and choose a partner that aligns with individual and business goals.