September 17, 2020 admin

Why Should You Work with a Medicare FMO?

As an independent agent selling Medicare, you have a lot to keep track of – licensing requirements, carrier contracting, compliance with CMS, marketing materials … the list goes on and on. It’s a lot for a single person, but there are solutions. Field Marketing Organizations (FMOs) can give agents they support they need to grow their careers successfully.

Selecting a Medicare FMO is a big decision, though, and not all FMOs are the same. Before you decide, here are the facts you should know and the questions you should ask.

What are Field Marketing Organizations?

Field Marketing Organization (FMO), Independent Marketing Organization (IMO) and National Marketing Organization (NMO) are all terms that are used interchangeably to describe companies that provide independent agents with the support they need to sell insurance plans.

FMOs work with both the insurance carriers and the independent agents, but they’re more than just middlemen. FMOs provide real value to insurance agents by helping with contracting, marketing and more.

Just like insurance agents, FMOs make money when sales are closed. This means that FMOs have a vested interest in helping agents succeed. FMOs also have the experience and resources that many agents lack. This is especially helpful for new agents, but even experienced agents can benefit from the resources that FMOs provide.

What are the benefits of using a Field Marketing Organization?

You’re an independent agent, but you don’t need to be totally on your own. By working with a Field Marketing Organization, you can gain the support you need while still being in control of your career.

Here are a few things that agents can expect from an FMO:

 

• Certification and Licensing Guidance: Insurance agents need to jump through a lot of hoops before they’re ready to start selling Medicare plans. While the licensing and certification requirements are needed to ensure that agents have the knowledge needed, it can be overwhelming, too. If you forget a requirement, you might not be ready to sell. An FMO can help by helping you understand the requirements and how to complete them.
• Contracting with Multiple Carriers: As an independent agent, the more carriers you contract with, the more options you can provide to your clients. An FMO can help you get contracted and ready to sell with multiple carriers. In fact, an FMO can help you get contracted with carriers that you may be unable to access if you tried to go it alone.
• Compliance Help: Insurance agents have to deal with sometimes complex Medicare marketing regulations, and these regulations can change every year. An FMO can provide guidance on compliance issues. This will help you avoid problems that could threaten your career.
• Access to Resources: To be effective in your job, you need the right tools, including retention letters to send to your clients each year and other marketing materials, as well as sophisticated tools that let you quote plans and enroll clients. Your FMO can provide you with these resources.
• Opportunities: There’s a lot you can miss when you try to go it alone. An FMO can send you important announcements so you don’t miss out on opportunities to find leads and grow your business as an independent agent.
• Training & Updates: When there’s a major change in the industry, you need to be on top of it. Medicare is always changing, though, so it’s easy to fall behind. Your FMO can provide you with important industry training and updates so you’re never left in the dark.
• Support: You want everything to go perfectly, but even if you do everything right, you might run into issues occasionally. Some applications might be difficult, for example, or you might come across a question you can’t answer. Your FMO can provide you with support when you need it most. And even when everything is going well, you might still need support in the form of marketing ideas and helpful tips. Your FMO can provide those, too.

 

What Should I Look for When Choosing a Medicare FMO?

While joining a Medicare FMO can be a great decision for your career, you want to know exactly what you’re getting into and how it will help you. To make sure the FMO is a good match for your career, you should ask questions. Lots of questions. For example:

 

• What product lines do they work with? Different FMOs may provide support for different types of insurance product lines, so you’ll want to find out which ones an FMO handles. If you’re selling Medicare insurance, you’ll probably want access to Medicare Advantage, Medicare Part D and Medicare Supplemental Insurance plans.
• What carriers do they work with? You want an FMO to work with multiple, well-respected carriers. If there are any carriers you’re specifically interested in, see if the FMO you’re considering works with them. Otherwise, just make sure there’s a good selection so you’ll be able to provide your clients with the options they need. Also, because not all carriers provide coverage in all areas, make sure the FMO works with carriers that serve your area.
• What materials and tools do they provide? Ask about quoting tools, enrollment tools and various marketing materials. You want to make sure you’ll have everything you need to do your job – without starting from scratch on your own.
• How can agents get assistance when needed? If you have a problem or question, you’ll need assistance. Find out when and how you can reach out to your FMO for help. Who will your contacts be? Will you use phone, email or another method of communication to get help? What days and hours will help be available?
• What other perks are provided? Find out what else the FMO can offer you. This might come in the form of training or tips, marketing ideas, sales incentives or other perks that will help you achieve your goals as a Medicare agent.
• What commissions will you get? As an independent agent, you earn your money through commissions on the sales you make. This means that how much you earn in a year will depend on two main things: the number of sales and the size of the commission. CMS sets the maximum commission that you can make on a sale, but you won’t always make the maximum commission because carriers can pay less. Talk to the FMO to see how commissions are handled.
• What is the process for leaving your FMO? You want your relationship with an FMO to last for your entire career – but sometimes, plans change. At some point, you may decide you need to leave your FMO. If this happens, you’ll need to get a release. Find out ahead of time what the process for this is.

 

Don’t Reinvent the Wheel

As an independent agent, you’ll work hard to help your clients while building a career for yourself. You don’t need to take on more work than is necessary.

When you try to attract Medicare clients, you need to prove that you have the resources needed to help them enroll in the right plan. They’re trusting you with their health and with their finances. Meanwhile, you’re competing with other agents, and some of them have been in the field longer than you have. You need the right support if you’re going to stay competitive. This means great contracts, effective marketing materials and convenient quoting tools – things that an FMO can provide.

Learn more about the FMO support you’ll receive from Legends United.