The fields displayed will differ based on the Product Type. Fields for Street and Override are displayed when the Product Type is Medicare Advantage or Medicare Prescription.
Commission Rates can be entered manually or can be created from an import. There is a specific import for Commission Rates for MAPD & PDP to be used for MEDICARE. Commission Rates for all Product Types are accessed from the Contract List page. There is a link from a Contract to go directly to Add Commission Rates or access a list page of Commission Rates by selecting View/Edit Commission Rates.
Selecting Add Commission Rates will bring up a page to create a new Contract Commission Rate. When creating a Commission Rate from the UI, the fields for the rates are not displayed until the Product Type is entered. When Medicare Advantage or Medicare Prescription Product Types are entered, then the Street and Override fields are displayed. If a non-MAPD Product Type is selected, then fields for percentage or fixed amounts, as well as values for an Advance are displayed.
Add Commission Rate page prior to entering Product Type:
For State, it is recommended that ‘Any State’ be selected. Leaving it blank will select all States, but that choice, or selecting ‘Select All’ (States), will not apply rates to Policies that have no State entered. With ‘Any State’ selected, the matching process is easier when applying rates to Policies by matching just ‘Issuer + Plan’ instead of ‘Issuer + State + Plan.’
Add Commission Rate page prior to entering Product Type:
Add Commission Rate after selecting Medicare Advantage or Medicare Prescription:
Organizing Commission Rates and how they work in the commission calculations
Contract Commission Rates within each Street/Override field work by the Rate of the Contact Commission Rate of the Agent less the previous levels Agent Contract Commission Rate.
Street and Override Rates
The Street Rates (Street Initial, Street True-up, and Street Renewal), typically are set up to the same amount per Contract. Then no matter what Contact level the Agent is, when they are the Writing Agent, they will receive the full amount, and any Agent in their upline will receive $0. So, for example, if Agents A, B, C all have a Street Initial Rate of $300, when Agent A is the Writing Agent, they would receive $300 ($300 - $0), Agent B would receive $0 ($300 - $300), and Agent C would receive $0 ($300 - $300). If Agent B was the Writing Agent, then they would receive the $300 and Agent C would $0.
Override rates can be allocated across Commission Rates per Contract in any way the tenant company desires. The Writing Agent may receive $0 or for a small amount of the Override Rate paid by the Issuer, and any Agent associated with the Contract Commission Rates below the top level can receive some, with the remainder going to the top-level Agent/organization. So, for example, with a total Override Street Rate of $96, if the Commission Rate for the Writing Agent A is $0, the next Agent up B’s Commission Rate is $16, and the Top-level Agent/Orgs C Commission Rate is $96, the respective Agents would be A = $0, B = $16 ($16 - $0), and C $80 ($96 - $16).
When Street Rates are paid directly to the Agents, the Street Rates for all should be left at $0. The system will then not pay out Street rates.
Prorating is done automatically when calculating commissions
The commission calculation will take any prorated amount and correctly allocate it to the Agents correction for all Rates. It does this by comparing the amount in the transaction field to the top-level rate for the respective Street/Override field. So, using the previous example, if the Override Initial amount were for $48, (6 months) then the commission paid to the Agents would be A = $0, B = $8, and C = $40.
Renewal Rates should be entered as the Monthly Amount
Renewal rates should be entered as monthly amount. That is typically how the rates are provided from the Issuer. (However, the system would compensate if the full year rate for renewal year rates were entered as the Contract Commission Rate and the system would calculate/allocate the commissions correctly.) In the same fashion as Initial/True-up rates for the Writing Agent, Street Renewal amounts for all the Contract Commission Rates for the Product are typically all the same amount, so the Writing Agents gets all the Street Renewal and Agents in the upline receive $0. Override Renewal rates can be allocated out as the tenant company desires to allocate payments to all in the hierarchy.