What happens to Agent Lopez's compensation if Ralph disenrolls from his Medicare Advantage plan within 3 months of enrollment?

When it comes to the compensation structure in Medicare Advantage plans, agents typically receive full compensation for a new enrollment. However, if a disenrollment occurs within the first three months, especially if it is classified as a "low-quality" or "inappropriate" enrollment, the entire compensation can be recouped. This policy is designed to encourage agents to prioritize the quality of enrollments over quantity, ensuring that beneficiaries are not only enrolled but also satisfied with their choice of plan.

The practice of recouping the entire compensation in such cases helps to maintain the integrity of the marketplace, pushing agents to provide thorough guidance to clients to prevent premature disenrollments. In this scenario, the recoupment aligns with the goal of fostering stable enrollment in Medicare Advantage plans, protecting both beneficiaries and the integrity of the Medicare program.