TN

I am noticing, with much interest, your problem with the commission structure insurance companies have settled on after receiving guidance from CMS, in paying commissions on Medicare Advantage Plans. We operate an insurance marketing organization with hundreds of contracted agents. May I add, these are mostly professional insurance agents that take much pride in dealing with their clients in their chosen career? They are really at the bottom-of-the-chain when it comes to dealing with these plans, but without them very little gets done. Most insurance companies realize without sales, they do not need ANY home office employees. Most insurance companies realize that it is very hard to find anyone experienced, honest and knowledgeable to represent them with these very confusing and ever-changing plans. I feel this is why they decided the professional agent is the cog that makes the wheels turn in offering their product to the public. Due to new CMS rules, we have been told by many good agents they are leaving the Medicare Advantage Industry. I do not see how a pay-cut to agents is going to save the government ANY money, or protect the public from predator agents. In regard to record profits by insurance companies, it appears one of the main concerns should be the cutting of the benefits by companies instead of what they are paying their employees or independent contractors. If agents are not allowed to make a reasonable living, more agents will leave the industry and the money will go to more advertising, infomercials or further add to the bottom lines. This may be the only industry nation where big-brother is trying to dictate a salesperson's earnings. Realizing your goal is to deter "churning" just to earn a new first year commission by an agent. I agree completely churning does need to be done. But, a pay-cut to agents will not accomplish this goal Just last week we had a 3 people come into our office wondering if they needed to change plans in 2009; our advice was and will continue to be, if it is working and your benefits are basically staying the same, it doesn't need fixing. There is much more to this business than earning a new commission by an agent. Straight from the Medicare & You 2009 Handbook: "Your health, finances, or coverage may have changed in the last year. Look at the cost, coverage, quality, and convenience your current Medicare health or prescription drug coverage will offer in 2009, and compare it with other available coverage options to see if there's a better choice for you." The above statement says to me that Medicare acknowledges that sometimes people need to change, due to their circumstances changing OR the changes in their plans. Many persons enrolled in these plans do not have a clue HOW to compare these plans. This is where the professional insurance agent's expertise is very valuable. When a sale is made, a professional agent usually has to service this client for the years, thus the professional insurance agent earns his pay. This is not normally a sign-them-and-forget-them sale. We sometimes have to service some of the clients every couple of months, counciling them on "deductibles", "donut holes", "generics vs. name brands, why they are having to pay 100% of their cost of drugs while still paying an insurance premium (try to explain that to a broke senior), and a multitude of other inquiries that we have no income for. I am a 21+ year veteran of the insurance industry, specializing in the senior market, a former County Chairman of the Democratic Party, a former political candidate, am very-very consumer oriented, feel I am fiscally conservative and much in favor of less government and government spending. But I also realize the problems I see when a professional insurance agent is not recognized for their true value, the person making it happen for the companies and Medicare in marketing these plans. The move that seemingly is about to take place will not save our government one cent, nor will it protect the public in any way. Contrary to popular belief, most of these agents are not the bottom-feeders, but are trying to honestly make their living servicing their clients as a professional in the insurance industry. Joe Moore National Senior Benefits Asurco Insurance Marketing www.asurco.com, www.shenagents.com, www.helpmedicare.com PO Box 1954, Morristown, TN 37816 1-800-226-1004, 423-581-1004