Within Section 110.6 of the Medicare Marketing Guidelines (MMG), Centers for Medicare & Medicaid Services dictates how carriers can compensate contracted agents and brokers. While this may not reflect how every carrier chooses to compensate, below are the items that can (and cannot) be considered compensation.
Compensation Must Be Sales-Based
Brokers can be compensated, both monetarily and nonmonetarily, for any kind of service related to the sale or renewal of a policy. Compensation can include, but isn’t limited to, the following.
- Commissions
- Bonuses
- Gifts
- Prizes
- Awards
- Referral/finder’s fees
Compensation Doesn’t Include Expenses
Broker compensation doesn’t include any of the following sales-related expenses.
- State appointment fees
- Training costs
- Certification fees
- Testing costs
- Traveling reimbursement (such as mileage to and from client appointments)
- Sales appointment or event reimbursement (such as marketing materials, venue rental charges, or nominal drinks and snacks)
Learn More With Excelsior
You can find more MMG breakdowns about initial and renewal compensation on our online resource center. If you’re interested in learning what Excelsior’s technology and structure can do for you, contact us today.
Source: https://www.cms.gov/Medicare/Health-Plans/ManagedCareMarketing/CY2019_Medicare_Communications_and_Marketing_Guidelines.pdf
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