Understanding your Commissions!

Commissions are paid one month after the effective date. Once you screen potential client and submit the application to the Market Manager in your area, the following steps occur:

  1. Health Plan send application to medicare
  2. Medicare check eligibility; Confirms part A or B
  3. Medicare then sends the confirmation back to the health plan that the applicant is eligible.
  4. Typically by the middle of the month Medicare pays the plan for the policies that were effective the beginning of the month.
  5. Medicare also send a report to the Carrier for “true-up” on any application that was found to be new to MA plans. This is separate money from the “Initial Review” that is send first to the Carrier.
  6. Health Plan pays commissions by the end of the effective month, typically 30 days from the effective date of the policy.
  7. MHB receives an excel commission report towards the end of the month. We sort out commission payments by downlines and create invoices.  When MHB receives the payment from the health plan, it is then sent out to the broker or to the FMO to payout their downline.

*Note: Keep in mind there are other eligibility factors that come into play before an application makes it through to being commissionable. Medicaid eligibility has to be confirmed if the applicant was written on a dual plan. Is the application in the service area? Was the correct election period chosen? These are a few things that can pend applications that would make them not show up on commission report. 

This is the reason why commissions take 30 days to process. This helps prevent charge backs and voluntary