Agents who have been anxiously awaiting the release of CMS’s Final Rule for 2015 can breathe a sigh of relief! The rule is out and, rather than the anticipated reduction in commissions, agents may actually be getting an increase!
In terms of agent/broker compensation, Renewal Compensation will be capped at 50% of the Fair Market Value (FMV) and carriers will be required to pay out all renewals at the same rate that they initially set for the year, which cannot exceed 50% of FMV. This is up from 35% and will be applicable for enrollments effective January 2015.
Read CMS’s media release here.