Medical Mutual Advantage Sales Changes

11-16-2024

I’m sure you’ve received the communication from Medical Mutual regarding Advantage sales staring Monday but wanted to provide a bit more detail.

New Advantage Sales submitted beginning this Monday, 11/18/2024, will be non commissionable. Unfortunately disappointed but not surprised with all that’s happening in the industry and the inordinate influx of business they had but it does present a challenge moving forward for the balance of AEP and until they are able to open things back.

In conversation with management, it is NOT a financial decision but one based on explosive growth and being properly staffed to handle that many more clients. MedMutual was anticipating 3-4x growth but as of this week are at 5-6x expected with 3 weeks to go. They’d need to add 300-400 employees, 60 new nurses which is very tough to find and train in short order. This would affect service levels, star ratings and overall reputation that would also trickle down to the broker, your reputation, if the plan you recommended failed to meet acceptable service levels.

The stoppage of commissions is just a deterrent to slow growth until they are properly staffed and trained which based on those numbers will take some time.  In conversation they stated it’s not that they are trying to take commission away from brokers as they very much appreciate and know that’s where the bulk of the growth came from, it is their only effective means of shutting the flood gates to prevent failures in service levels.

Business can still be written after Monday if the need dictates but will not pay commission at this time.

It has certainly been a very unique year like none of us have ever seen, likely all starting with the Rx changes for 2025 where a Federal mandate came, shifted significant new risk to the carriers with no further help and then comes the unintended consequences...

I know this doesn’t help at all on the actions taken but hopefully provides a better understanding and that Medical Mutual is protecting the current and new policyholder which does ultimately trickle to the broker.

Feel free to reach out with any additional questions or help we may be of.