Carrier Increases Medicare Supplement Commissions

One of the major carriers is increasing their commissions for Medicare Supplement plans. See the video for the implications of this news: Letter going out to agents: "Your Medicare Supplement applications dated January 1, 2014 or later, and issued by Mutual of Omaha and its affiliates, will receive compensation under a new commission schedule. Your compensation on these sales will be paid to you at a rate that is 400 Basis Points (4 Percentage Points) higher for policy years 1 through 6, than your previous sales. For example, if your old schedule paid 10% commissions in years 1 - 6, the new commission rate will be 14% in years 1 - 6. Unfortunately for sales in AK, CT, DC, FL, HI, NY, RI AND VT your commission rates will not change from current rates. Some states have different commission patterns, which you are probably familiar with; we suggest that you refer to your new schedule to see the actual commission schedule for the states you write business in. Your new schedule will be available for download on Sales Professional Access onwww.mutualofomaha.com beginning December 20th. Mutual of Omaha has another opportunity for you to earn more commissions on business written January 1, 2014 or later. They will pay you increased compensation for premiums paid in years 2 through 6, if the applications you submit are subject to normal health underwriting, and these applications are at least 40% of your total block of applications. The bonus starts at 200 basis points at 40%, and if the underwritten percentage is 50% or more, the bonus is 400 basis points. Mutual of Omaha also has liberalized the payment of compensation for older policies that you originally wrote. If an old policy is rewritten to a current policy, compensation will be 90% of what would be payable for a new policy, which is an increase from the current percentage of 75%. Of course any rewrite must be in the best interest of the insured. Full details will be available on December 20th by downloading your schedule fromwww.mutualofomaha.com."

Recent Posts