Blog

Best Medicare FMO For New Agents

Having a good field marketing organization (FMO) can be a huge boost to an agent’s career. Crowe and Associates is one of the best Medicare FMO for new agents. They can offer access to lead money, free training programs, enrollment platforms, and support from the people who have already done the task of building an agency. Crowe and Associates can provide agents with access to Medicare in all 50 states in the country, as well as access to other lines of insurance businesses such as life, annuity, final expense, health, indemnity products, and long-term care.

One of the reasons that Crowe and Associates stands out from the crowd of other FMOs is that they started as literally one agent without a single Medicare client. They have built themselves from the ground up, and understand all the steps and missteps that new agents and agencies are likely to take as well as the support they will need to succeed. Their agent programs are designed on the real-life experience of their founder, and they are still independently run and now backed by Pinnacle Financial Services.

Services that Crowe and Associates offer agents and agencies who join them.

The Turn-Key Turning 65 Seminar Program

This is an educational seminar that Crowe and Associates provides that averages at more than 50 attendees per session. They also provide sample seminars, hands-on training, and guidance from start to finish. Crowe and Associates can also cover 50% of the first seminar for new agents and up to $500 of the cost for future seminars.

Monthly Medicare Lead and Marketing Reimbursement

Every agent who works with Crowe and Associates has access to up to $500 in monthly lead and marketing reimbursement, without decreasing their commissions. Agents send in their receipts and Crowe and Associates will send them up to $500 a month in support.

Access to Connect4Medicare Online Enrollment Software

Agents with Crowe and Associates can access Sunfire, Connecture, and MyMedicarebot for quotes, comparisons, and enrollments at no charge to them. This can lead to direct sales and enrollment without even a need for a face to face meeting, increasing agent’s commission easily.

Free Website, Graphics, and SEO for Agents

Crowe and Associates will also provide a free URL for agents.   This URL is CMS-compliant. Quote and enrollment platforms are built right in. Again, this is at no cost to the agent. There is also support and guidance available for SEO and advertising on sites like Youtube, Google Ads, Facebook, and more.

Support and Training

Full-time, in-person support is provided at both the CT and PA locations of Crowe and Associates. They provide training for day-to-day sales, online training programs from both locations, and their favorite activity is helping agents and agencies build their business and their revenue.

Medicare agents – Click here to see what Crowe and Associates has to offer 

Keep up with all of our current events by clicking here. 

Ready to contract?   Begin here.

Subscribe to our YouTube channel.   We provide weekly training and informational webinars.

Click here to view more images by this artist

Medicare field marketing organization

In this post, we discuss the advantages for downline agents to work with a Medicare field marketing organization.

What is a Medicare Field Marketing Organization (FMO)

An FMO is a specialized entity that works with both insurance carriers and brokers to educate, promote, and distribute Medicare plans. FMOs act as go-betweens for insurance carriers and independent insurance agents.  They provide support and resources to improve the marketing and enrollment process.

They actively recruit independent insurance agents to join their downline and grow their agency.  FMOs are always looking for knowledgeable, committed agents who enjoy providing great service to their clients.

Once an agent is onboarded, the FMO should provide them with the resources they need to be successful in the Medicare market.

See what a great FMO can provide

What does a Medicare field marketing organization do:

1.  An FMO establishes contracts with multiple insurance carriers.  This allows agents to represent a broad range of Medicare plan options.  In turn, this provides beneficiaries a better selection of plans to choose from, based on their needs and preferences.
2. Smart FMOs will invest their time in their downline agents.  They must provide training to ensure that agents are able to understand and give guidance beneficiaries who are interested in the product they are offering.  Training can include in-person events, webinars, zoom meetings or any other way that gives the agents up-to-date plan/industry information.
3.  Assist agents with the enrollment process.  This is done by offering invaluable technology platforms and other resources to help streamline the process.   These platforms save time and allow agents to focus on providing the best possible plan options and service to their clients.

To view our free training videos; subscribe to our YouTube channel.

What else can a Medicare field marketing organization provide agents:

1. Provide both sales support and assistance with marketing.  They can direct agents on where to get marketing materials, applications and other things such as; compliant call scripts, marketing        support and strategies for lead generation.

2.  Help choose the best carriers for each agent to offer based on both location and product type.  Provide agents with information on new products available in their local market.

3.  Make sure downline agents are updated on any new regulations, compliance issues or industry standards.

4.  Provide guidance for agents who want to expand their business by boosting sales or recruiting downline agents.  It is always good to recognize agents who continue to do well or those that are improving.   Motivation is a key component in the FMO agent relationship.

5.  One of the most important ways an FMO can show support to their downline team is by addressing any concerns or questions they have in a timely manner.  Do not ignore an agent who calls in for support.  Many agents request releases due to a lack or training or their up-line not addressing their concerns.

If you want to contract with Crowe and Associates, click here.

Click here to add a carrier or state to your current Crowe and Associates contract.

Already with another upline; Click here for intent to move instructions.   Not all carriers are listed.

If you need help with a carrier that is not on the list; please call the office.

A great Medicare field marketing organization will:

Create a collaborative and mutually beneficial relationship with their downline agents. They provide the resources that empower agents to effectively market and sell Medicare plans.  This kind of relationship benefits both the agents and the Medicare beneficiaries they serve.

Provide the support downline agents need to thrive in the competitive Medicare market.  When an FMO does it’s job correctly, they represent knowledgeable, compliant dedicated agents and  entire Medicare system benefits.  this incudes everyone from the beneficiaries to the carriers.

to view more images by this artist; click here

Medicare hierarchies and contracting

Medicare hierarchies and contracting provides a review of the sales structure for independent agents, agencies and top of hierarchy (TOH) organizations.  This focuses on Medicare Advantage plans but the general concept applies to most product types.  However, commissions, override amounts and structures will vary.  We will also cover general carrier contracting for all levels including; independent agent, agencies, TOH.

Independent Medicare Advantage and PDP contracted agent

Independent agents are able to hold contracts with multiple carriers.  In some cases the agents are able to contract directly with insurance carriers or go through a hierarchy (upline).  Some carriers only allow agents to contract through an upline.

CMS max allowable compensation for MA and PDP (street commission)

Every year CMS sets the maximum allowable commission an independent agent can receive for Medicare Advantage sales.  The amounts listed as the max amount for a new MA sale and the max amount for a MA renewal. The renewal is half the initial amount.  The PDP commissions work the same way.   CMS breaks the states up into 4 groups.  The comp for each group is different. Groups are:

• CA and NJ:  Highest compensation
• CT, PA and DC:  2nd highest compensation
• National:  All other states not listed above and 3rd lowest compensation
• Puerto Rico and the U.S Virgin Islands:  Lowest compensation

Click here for the max commission amounts for 2023

Top of hierarchy organizations (Called FMO’s or NMO’s)

FMO’s and NMO’s are companies that contract with insurance carriers.  They receive compensation above what Medicare lists as the max compensation.   Both independent agents and agencies (more on agencies later) can contract through an FMO instead of direct with the insurance company.  Some insurance companies will only contract agents through an FMO.  The agent can access multiple insurance company contracts through the FMO.  In most cases, the agent is paid directly by the insurance company at the max allowable CMS compensation.  This is the case even though they contract through the FMO.  That means, the agent owns the book of business.  If they left the FMO for another FMO or went direct to an insurance carrier, their renewals and book of business would go with them.

The FMO receives an override (an set amount of money per sale)

When insurance agents sell a Medicare plan the FMO receives an override.  As a result, the more an agent sells the more overrides the FMO receives. The concept is designed to incent the FMO to help the agent sell more. This is done through training, contracting assistance, marketing programs, incentives, leads, agent services or a number of other value added programs. The FMO also receives overrides when cases renew.

If the FMO contracts an independent agent to receive commissions directly from the carrier, the agent receives the full CMS commission from the carrier. (Street commission direct pay)  The FMO will then receive the full override.  Override amounts can vary from carrier to carrier but we will use $125 as an example.  Every time the street agent sells a policy the FMO will receive a $125 override payment.  In most cases, the override is half the amount for renewal payments.

Medicare hierarchies and contracting:  Agencies under FMO’s

In many cases an independent agent will contract through a local agency or an agency with a contract level below the FMO level.  If this is the case, it is still common for agents to paid the full CMS commission directly from the insurance carriers.   In some cases the agents have the carriers pay the commission to the agency and then the agency pays it out to the agents.  This is called an LOA or commission assignment arrangement. (More on this later)

In general there are 3 levels of agencies under an FMO.  The level determines how much the agency will receive as an override.   Please note: overrides are one pool of money, they are not additional amounts above what the FMO receives.  When an FMO has an agency under them, they are giving up the portion of their override the agency is receiving.

Agency contract levels

GA-General Agent:

An agency at the general agent level receives a $50 override per sale.  The amount of override on the renewal is usually half of the initial override.  In most cases, the general agent needs to have at least 5 contracted and certified sub agents in order to get the GA level with any carrier.

MGA- Master General Agency:

Override of $75 per enrollment and half that amount upon cases renewing:   Minimum of 10 contracted and certified sub agents to have the MGA level

SGA-Senior General Agency:

Override of $100 per enrollment and half that amount upon cases renewing:  Minimum of 20 contracted and certified sub agents to have the SGA level.  This level also requires production minimums in addition to the min number of sub agents.

The amount of override paid to the agency under an FMO is deducted from the amount of override they would receive with a street agent only.   Example:  Street agent under an MGA agency that works through an FMO.   Agent get the max allowable commission paid directly from insurance carrier.  The MGA gets a $75 override and the FMO gets a $50 override (assuming the FMO was getting a $125 override)

Levels:

The agency levels are all splitting one pool of money for overrides. (assuming a $125 FMO override level)   If an FMO has a GA under them, the GA gets $50 and the FMO gets $75)  If an FMO has an SGA under them, the FMO gets $25 and the SGA gets $100.   If the SGA has a GA under them, the SGA gets $50 and the GA gets $50)

• FMO ($125)
• SGA ($100)
• MGA ($75)
• GA ($50)
• Street agent (gets full CMS commission paid directly from the insurance company regardless of how many agencies in hierarchy)
• Note:  PDP plans also have override payments but they are substantially less than MA plans

Medicare hierarchies and contracting: commission payment methods

Direct pay:  In most cases, independent agents are paid directly from the carrier.  This is often the case for agents appointed directly with a insurance company and also often the case when contracted through an upline. (FMO,SGA,MGA,GA) When an agent is set up as direct pay from the insurance carrier, the agent owns the book of business and the commissions.

LOA contract/Commission assignment

In some cases an agent will not have their commission paid directly to them.  The agent is writing the business but the insurance company is not paying the compensation direct to the agent but to another agent or  an entity/agency.  The agent or entity receiving the commissions are then paying the agent based on some type of agreed upon amount. The amount paid is usually an amount below the CMS maximum amount.

This is often the case for a w-2 agent writing business for a company or agency.  It can also be used for a 1099 agent when the upline is providing some type of value in exchange for a portion of the commission.   In this case, the writing agent does not own the book of business.  If they leave the upline, the commissions will continue to be paid to that upline at whatever terms and conditions had been agreed upon.

Medicare hierarchies and contracting: Contracting agencies and sub agents

Any agency cannot contract another agency under them at the same level.  For example, if an SGA wants to bring on another agency, the highest level the agency could be is an MGA. IN other words; they must be one level below the upline.

Having commissions paid to an entity:

Medicare Advantage and Part D commission can pay to an entity.  In order for the entity to be paid, it must hold an insurance license.  Further, the entity must have a listed principal (person) and that principal must be contracted and certified with any given carrier for the entity to be able to receive commissions

Individual person as an agency: 

An individual can be considered either a GA, MGA or SGA.  This is the case when they meet the minimum amount of sub agents required by a carrier. An individual they can be given an agency contract as an individual.  Having an entity with an insurance license is not a requirement for most insurance companies

Agency with producers (sub agents) in other states

In order for an agency to receive overrides in any given state, that agency must hold an insurance license in that state and be appointed and certified with that carrier.  This can be problematic when an agency brings on a producing agent that is licensed in states the agency is not licensed in.