FMO – Search and Save

How big are these Medicare conglomerates who own us all?

Amber Lutes — Tue, 21 Nov 2023 20:32:48 +0000

This article first appeared on Linkedin on March 10, 2022, and is written by Scott Nichols

So just how big are these vast conglomerates who own us all in the world of Medicare marketing? Well if you combine the two biggest conglomerates out there “gobbling up” all the FMO’s across the country you will see the following.

They boast of having over 850,000 agents and advisors in their downline!

They outright own 7 national direct to consumer call centers and an expansive network of direct to consumer websites to compete against you! Their own downline agents! They own advertising agencies, lead companies, data companies and more. (By our count) They have currently consumed 236 FMO’s, Brokerages, and Financial & Wealth Planning companies. For you the agent, they offer free software so to make your Medicare quoting and enrollment easy.

Why free and so easy?

Well, if you look at their privacy policy’s or user agreements, they say you are permitting them to share your entered data for insurance purposes amongst their owned subsidiaries. They say they do not sell your data, so I guess they just want to borrow it for a while?

So who would be borrowing your client data? Well, ad agencies, lead companies, data companies, 236 insurance and financial brokerages and 850,000 agents. No! Really? Well you ok’d it right? The proof is in the experience. Ask yourself this, since you started using the “FREE” Medicare system and CRM from your vast conglomerate up line (or the free one from your FMO who was consumed by a vast conglomerate) have your clients been contacted more or less?

I’ll bet more. Much more!

According to recent published surveys from senior associations the average Medicare beneficiary receives up to 12 calls a day from a Medicare call center with at least 2-3 pieces of Medicare marketing mail. This of course doesn’t count AEP when it triples or more. “Senior benefits” “Medicare help line” “ “US Benefits” “Medicare Enroll” All these and more call your clients daily and many are owned by the vast conglomerate who bought your FMO.

There seems to be little a field agent can do to fight back against this hoard of insurance conquistadors, but here is one thing you can do.

PROTECT YOUR CLIENT DATA AND STOP GIVING IT TO THE VAST CONGLOMERATES (and formerly friendly partnering FMO’s) THROUGH THEIR MEDICARE SYSTEMS & CRM’S

Use our Search & Save Medicare system & CRM!

The Agent built and agent serviced Medicare system & CRM that is accurate, private, and secure.

The first line of our privacy policy reads

“We will never mine, sell, or share your client data with ANYONE EVER!”

Look, you don’t have to leave your BFF FMO.

You can swap stories, drinks, and laughs at their next Top Golf event.

But as far as the serious nature of protecting your client data from “sharing” you need us.

You pay less than $1 a day per user. You get to help keep your client data from being “shared” and you accuracy, privacy and protection.

30-day free trial with no credit card needed

Join the over 4000+ agents who are protecting their business by using Search & Save

-Scott Nichols

Putting the puzzle pieces together on TPMO Medicare Call Centers

Amber Lutes — Tue, 21 Nov 2023 18:28:32 +0000

This article first appeared on Linkedin December 12, 2022 and is written by Scott Nichols.

The link to the YouTube interview was sent to me by an agent friend. Once AEP was over, I finally got the chance to watch this very interesting interview with an actual consumer who was getting contacted by the many Medicare call centers out there. What made this interview (51 min) so interesting was this gentleman is 34 years old! He is not on disability nor on Medicare. He is not dual eligible either. He is just an ordinary person who (as you will see) unfortunately answered a call to his phone. He has told the call center representatives that he was on the national DNC list. That is 34 years old and not eligible for Medicare. It makes not difference. The calls keep coming…..because he answered his phone.

The average number of calls were 25 a day with a spike of calls to 90 a day during AEP. He decided to ask to be passed through to a supervisor. Instead, he was “live” transferred to an agent. Once the agents discovered he was 34 years old and not a lead for Medicare he was cussed at, hung up on, etc. This man decided to start digging into his rights as a consumer and who was behind all of these calls. What he learned was tangled and incredible.

He said the calls were from different generic names and random “local” numbers, but all led to the same place in the end.

“Senior Benefits” “Medicare Help Center” “US Benefits” “Medicare Enroll” “Healthcare Department” “Medicare Advisory” even “Medicare” itself were names used by the call center employees. “You qualify for “X” benefits and we are here to help you access it” were the common pitch lines. Once he was able to speak to a call center supervisor who told him that since he answered the calls he was considered a “premium lead” and that he would likely get even more calls because he answered the phone. The call centers goal was to get his call transferred. This was ultimately how the call center got paid. He discovered this particular call center was named All Star BPO in Rawalpindi Pakistan and has a contract with Integrity Marketing Group LLC for services. There were also many other US call centers who contacted his as well.

He could not block the numbers because the call centers are using SPOF numbers with generic names. SPOF numbers are the kind that look local but are really from call centers. It is a strategy to get you to answer the phone. He even got a call from his Dad’s phone number! It was not his Dad….it was a call center. In an attempt to dig deeper he finally got “transferred” to an agent who would speak to him. She was an agent under the Berwick Insurance Group (a partner of Integrity Marketing Group LLC). She informed him that his transfer to her came through a company called Connection Pointe (a partner of Integrity Marketing Group LLC) and that the “live” transfer lead cost her $11.

After this call, he contacts Berwick Insurance (a partner of Integrity Marketing Group LLC) and speaks to one of their executives who flatly denies they have anything to do with these call centers or the selling of these leads to their agents.

As the daily calls continue to roll in, the man does not stop his efforts to get to the bottom of all these calls and the selling of his information. He ends up speaking to the legal team at Integrity Marketing Group LLC. He was told that since he agreed to be transferred the call was not a violation of the DNC rules. Too bad so sad, you will continued to be called. No one has been willing to remove his name and number from the list being sold over and over again. Even though it is a bad lead for Medicare it keeps getting sold.

To this very day he averages 25 calls a day. Why doesn’t he just change numbers? you ask. He doesn’t want to nor feels he must because the phone number is his private property and he has exercised his rights to protection under the national DNC registry.

Industry whistleblowers are coming forward to say the average “lead” in Medicare is sold off 11 to 15 times. In looking at this story it makes sense. If you are receiving an average of 25 calls a day from Medicare call centers, I’m sure your contact data has been sold of many times. Unfortunately, this man is getting calls from not just Medicare call centers now but from all types of industry’s as his information is being resold again and again.

Why would the conglomerate worry about the quality of the lead anyway? They’re not the ones paying for them. The field agent is. One last thing to consider. If a 34 year old man’s data is worth $11 on a “live” transfer for a Medicare lead, how much more is your BOB clients data worth?

WE MUST PROTECT OUR CLIENT DATA! Search & Save does just that.

Our Search & Save Medicare system for agents use is dedicated to keeping all of our subscribers entered data, recordings, screen shares, et al private and will NEVER be SOLD for MINING, SELLING, or SHARING to ANYONE EVER.

You can check out the interview here on YouTube:

Feeding a “lead mill” or building your BOB. Your keystrokes this AEP will decide.

Amber Lutes — Tue, 21 Nov 2023 16:50:01 +0000

This article originally appeared on Linkedin in October 10.2022 and is written by Scott Nichols.

Will you be helping your competition this AEP by making sales?

That sounds crazy doesn’t it? Even so, whistle blowers are coming forward to tell their stories. YouTube & Podcast are being broadcast by those affected by some of the harmful fallout from all of the acquisitions going on in our industry. Alarm bells are being rung, but still many agents ignore them and it is getting very late. So what can you do as a regular field agent selling Medicare plans to protect your BOB’s data?

I was fascinated as I listened to the “whistleblower” tell their tale of how these conglomerate acquisitions are structured. The huge conglomerates offer the brokerage owners single to double digit millions of dollars to be paid between 1-3 years. For this vast amount of money, the brokerage owner stays on and manages his existing downline producers with one catch. The brokerage owner is to heavily promote to the downline agents the “real time” leads from the new conglomerate entity they have “partnered” with.

The question is where these “real time” leads come from ? According to the whistleblowers account, they are from books of business from other acquired brokerages by the same conglomerate!

What the whistleblower described was a scenario where the conglomerate buys agency A & agency B. They sell agency A’s book of business as “real time” leads to agency B and vice versa. The brokerage “partners” are to promote the purchasing of these “real time” leads to their downlines for a period of 1-3 years to hold up their part of the buy out agreement. A podcast added that this data is also sold in the open market too. That the data is sold 11 to 15 times over!

So where do they get the actual data from? I don’t know but it seems easy to guess.

I would imagine if you are using the brokerages FREE Medicare enrollment system and you clicked to agree to the User Agreement (which you didn’t read because it is a mammoth legal document) you gave ownership of the entered data to the data vendor plus, the use of it. That kind of supply chain of “LEADS” would keep a former brokerage owner busy selling I think. I know this is hard to accept. We have no way of confirming these whistleblower reports but there are more whistleblowers coming forward all the time. There are stories of new agents emptying their bank accounts to buy these “leads”. The people who broadcast these stories and interview the whistleblowers are even being sued.

This doesn’t seem like a big secret really as we have seen the affects of this activity growing annually. Every year our clients get more and more calls, text, emails etc. DNC list, unlisted numbers, et al make no difference, but it is happening.

So what can you do, right now, to help protect your company, career, and book of business?

We were faced with this same issue in my brokerage. My FMO sold out to one of the conglomerates. We were worried and should have been.

One big thing we did was invest in the creation of an agent built and serviced Medicare system and STOPPED using their FREE system. This was expensive, but it helped us to feel that at least our client data was secure moving forward.

We decided to start making this system available to independent agents and agency’s across the USA. No recruiting. No required hierarchy change. A low cost subscription service to help independent Medicare brokers. Less than $1 per day.

For a low subscription fee, agents could stop feeding LEAD MILLS & CALL CENTERS and OWN THEIR DATA.

Is this article an ad? Is it not self serving? My answer to this is yes, but someone in our industry had to step up and make an attempt to protect the independent field agent selling Medicare plans without an ulterior motive.

We have to face the threat that our upline FMO’s have used us as a commodity. That whistleblowers are coming forward and stating that they are selling our data to huge conglomerates who are then selling it to each other as “real time leads”!

We must start banding together to protect our businesses, careers, and futures. I have invested heavily in the creation of an independently owned Medicare system to protect us from these threats. By your keystrokes starting on Oct 15th you will decide the future of your book of business, agency, and future career.

-Scott Nichols

Is the conglomerate who just “partnered” with your FMO about to impose sales quotas?

Amber Lutes — Mon, 20 Nov 2023 19:03:00 +0000

Is your FMO about to demand sales quotas from you because of their conglomerate partner?

Is the conglomerate who just “partnered” with your FMO about to impose sales quotas on you? Yep!

This post originally appeared on LinkedIn on February 21 2023 and is written by Scott Nichols:

The recent decision by vast Medicare insurance conglomerates (via their FMO “partners”) to impose sales quotas on their independent Medicare selling agents has caused quite a stir in the industry. There are a lot of different opinions on this topic, but we wanted to take a closer look at how this could potentially affect independent agents selling Medicare plans.

Sales quotas can be a controversial topic, particularly when it comes to independent sales agents. Understandably, there is some concern that these kinds of quotas could have a negative effect on agent productivity and morale. In this article, we’ll take a closer look at the potential implications of sales quotas for independent Medicare agents. We’ll also explore some possible strategies for dealing with them effectively. So if you’re an independent agent who is affected by this change, read on for some helpful information!

What do the “partnerships” and “buy outs” from FMO to the huge conglomerates have to do with this?

The partnerships and buy outs from huge Medicare conglomerates give FMO’s huge incentives in terms of bonuses and value. The FMO is able to calculate the amount of value for their brokerage that the conglomerates will pay for their buy outs and make sure the conglomerates are paying top dollar at the end of the term. To reach these financial goals, FMO’s need to double or triple the size of their brokerage by the end of the buy out period to max out the bonuses offered. Ultimately, these partnerships and buy outs can be extremely beneficial for both FMO and the conglomerates involved. The question is, where does the production come from to double or triple the size of a brokerage? You

Conglomerate owned call centers and lead companies have quotas. Are 42,000 + independent agents next?

The independent agents who work in the Medicare space have been increasingly facing a difficult reality. Conglomerate owned call centers and lead companies have had quotas. The conglomerates are now speaking of implementing sales quotas on the agents they have purchased through “partnership” with their FMO. This puts independent owners in a precarious position, as they could be subject to quotas while having only a contractual relationship with conglomerates via an FMO. While it is expected that independent agents manage certain performance metrics on their own, subjecting them to conglomerate quota expectations is unjust and could potentially hinder independent’s viability within the space.

What can the independent agent do to fight back and get relief from these quotas?

The independent agent, who is feeling the pressure of quotas imposed on them by their current brokerage, can take steps to fight back and get relief. They should look for brokerages that don’t have quotas, and consider joining a larger national agency since they tend to have more flexibility when it comes to handling both individuals and groups. The agent can also use the Search & Save Medicare system as well as a Customer Relationship Management (CRM) software to better organize their clients’ information and stay apprised of changes in the industry. By pursuing these strategies, the independent agent can work hard to protect themselves from having quotas imposed on them in their current role.

Though the new sales quotas for independent insurance agents are unfair and unrealistic, there is a way to fight back against them. Many believe that by using the Search & Save Medicare system and CRM, agents can maintain their independence while still providing quality service to customers. For more information on how to keep your business running smoothly in spite of quota changes, visit https://mmqsearchandsave.com today.

A Deep Dive into that Privacy Policy You’ve Never Read!

Amber Lutes — Fri, 17 Nov 2023 21:52:02 +0000

A deep dive into the privacy policy you never read that’s harvesting & sharing your client data

This post originally appeared on LinkedIn on April 5th 2023 and is written by Scott Nichols

Good day, My topic today may sound boring, but it is not. It affects about every agent here today in a big way. By our own hectic lives and ignorance, many of us field agents have been taken advantage of in my opinion.

Today, I’m going to explain how many of you are feeding the beast that is consuming your client data. A beast that is then competing directly against you and undermining your business via the “Privacy Policy” you agreed to but never read.

Where is this you ask?

It is in the “free” quoting software and CRM being offered to you by the vast conglomerates taking over our industry. A recent history of our industry shows that in 2019 the major insurance carriers signed National Distribution Partnership agreements with a couple of vast conglomerates interested in buying up our industry.

These vast conglomerates received billions of dollars from venture capital companies and started to buy up FMO’s and more across the USA. It is speculated that most of these buyouts are 1- 3 yr deals, so the fallout to the field agent’s future is uncertain at best in these arrangements.

These conglomerates also have invested in mass media (TV, Radio, Online), Call centers (with the purchase of the largest call center in the USA in Miami, Fl.)

They have launched multiple websites and opened captive agency’s in our neighborhoods.

All of this being direct to consumer marketing in complete competition with the independent field agents they acquired through the FMO buyouts that have taken place.

The markets that have been affected by these actions are under 65 medical, group, Medicare, Life, Annuity, investments, LTC, and other financial products.

Here is a snapshot of what the two largest conglomerates have consumed as per their websites.

· 193 Insurance brokerages and FMO’s

· 24 Wealth and Retirement advisor outlets

· National data vendors

· Six direct to consumer call centers

· Advertising companies

· Lead companies

· Consumer Data Companies

In 2019 , (4 years ago) the largest of these conglomerates boasted 500,000 agents & advisors under its hierarchy. The second largest, had 350,000 reported in 2020.

So 3-4 years ago there were 850,000 agents and advisors under one of these two vast conglomerates

Can you imagine what the number is today? Here is a reality check.

These conglomerates offer you “free” quoting and CRM systems. Either directly through them or via their owned FMO sub-entities. When you use them and enter client data for a quote or enrollment your data is subject to their Privacy Policy use and you agree to it.

This privacy policy is rarely ever read. Today, I will show you what you may have agreed to.

For our example today, let’s look at the privacy policy from the largest of the conglomerates out there. This privacy policy currently affects more than 500,000 agents and advisors.

Personal information we collect:

They collect name, email, postal address, SS#, age, race, marital status, sex / gender (except CA), products / services purchased, interactions with conglomerate owned websites, applications, advertisements

Sources of the information:

Direct , AFFILIATES and SUBSIDIARIES (your FMO) AGENTS (you!) Lead Vendors, and more

Use of personal information:

Provide products and services + marketing, and promotion of products & services offered to the consumer

Sharing of personal information:

“The company may share the personal information of consumers with agents, carriers, service providers”

FMO’s (consumed and not yet consumed) have “private” or “white labeled” quoting and enrollment systems that they offer to you at no cost.

Here is the privacy policy from the largest of these private label developers that you agree to when using their platform.

What they collect, how you need to check the privacy policy periodically as it will be updated without notice and who they can share your client data with.

It’s not just the big conglomerate systems privacy policy. The FMO private labels need to read carefully too

Who they can sell or transfer the data to:

They say they don’t sell data, but then say they can?

Some agents say, “I don’t use those systems. I use Medicare.gov”

Our Search & Save Medicare system & CRM has gone through many reviews by CMS.

We have learned much from these interactions with the CMS IT, Marketing, Compliance, and Surveillance departments.

Here are some important takeaway facts you need to remember.

· Medicare only shows what the carrier’s FILE

· The Medicare.gov plan finder IS NOT connected to the carrier servers

· Medicare can only update information on their site once a carrier FILES updated information with them

· It is NOT instant. Accuracy anyone?

What can you do?

· We are NOT independent

· Most of us are OWNED by one of these vast conglomerates via our FMO connections who sold out to them

· Our CLIENT DATA is more valuable then our commissions to these entities

· We MUST protect our CLIENT DATA from them and their use of it

What did we do to combat this?

· Created an agent built and serviced Medicare system & CRM (Search & Save)to protect data!

· Connected to the carrier servers for accuracy

· Connected to the carrier servers for Provider & facility search

· HIPAA, Soc2, PCI compliant

· Printouts approved by CMS

· 2700+ agent users and GROWING

· Mission statement: “provide accuracy, BOB privacy, and security to insurance agents using it.”

· Our Privacy Policy first line reads: “We will never mine, sell, or share your client data with ANYONE EVER!”

Action steps to start protecting your client data

· Read the privacy policy on the Medicare system and CRM you are using

· Disengage from the vast conglomerates and FMO’s

· Stop using your “FREE” system from the vast conglomerate or FMO

· Do what you can to get your client data exported out of there

· Only enroll on the carrier sites

· Consider Search & Save for accuracy, BOB privacy & security

–Scott Nichols

Are you feeding the beast that will one day consume your business?

Amber Lutes — Fri, 17 Nov 2023 17:35:00 +0000

I saw the post today of yet another huge FMO in the Medicare space selling to the massive conglomerate that has been devouring the industry for the past few years. It made me think. What are the exposures to regular agents and agencies in these acquisitions? What is the end game in all this? Is the purchasing of these large FMO types a good investment for the venture capitalist involved?

Background:

Many agents I speak to have no idea how the distribution channels are set up in the “independent” agent Medicare world.

The system is set up as a traditional MLM (multi-level marketing) system. Not all systems are the same with every carrier, but the description below is very close to many of them.

FMO / IMO (top level)

SGA (second to the top level)

MGA (third to the top level)

GA (fourth to the top level)

Agent / Solicitor (street level)

There are commission levels paid independently to each level involved in the recruiting of the level below it. If a level is missing it is paid up to the level above it. The agent level gets the lion share of the commissions paid. An override is paid out at each level above it. (Example: MAPD pays $450 to an agent, $50 to the GA, $25 to the MGA, $25 to the SGA, $15 to the FMO)

To make a lot of money with this the manager levels must recruit and get producers to sell. Renewal commissions are half of the amounts above.

Latest trends:

Over the past several years, I have witnessed FMO’s giving “free” Medicare quoting and enrollment systems. When I attended a conference on this by one of the large national vendors of such systems I learned that FMO’s were using these systems to keep the agent in their hierarchy. Agents could only quote and enroll what they were contracted with the FMO to use as well. In 2019, when Medicare.gov placed a firewall into their quoting system it made the use of this tool for agents obsolete. FMO systems had to start allowing agents to see plans outside of what the agent were contracted with them for. There has also been the rise of the “call center” in Medicare sales. TV ads, radio, social media, cold calls from overseas, et al never stop and makes for a real challenge to the agents in the field. One thing agents do not fully realize yet is the large FMO’s own and operate “call centers” that directly compete against their own sub-agents. They may hide them from you. They may tell you it does not compete against you…. but it does.

Did you ever stop to think….

The same FMO that gives you a “free” Medicare quoting and enrollment system has you electronically sign a USER AGREEMENT” giving them (and the data vendor) ownership of your data and the use of it.

I have heard many agents say “I wonder how they got my clients name and number to call?” “They are on the DO NOT CALL LIST” (LOL)

Are YOU feeding the BEAST?

So you’re are using the “free” system (& CRM) given to you by the FMO who owns (or is connected through acquisition to) a call center. You keep putting client data in the system. Ever ask to get the data out of the system? See what they tell you. They may say no. They may say “we’ll get back to you on how to do that.” They may say ok, but remember, your data is still in their system and always will be. How? You signed a USER AGREEMENT allowing it.

Could the BEAST one day turn on you?

What does all this have to do with the acquisitions of FMO’s by a conglomerate?

A 1.6 billion investment was given to this conglomerate to go out and buy up the Medicare FMO’s.

To date they have acquired almost every significant Medicare FMO plus, a National Medicare data vendor and the largest call center in the USA.

Eventually, those investors are going to want a significant return on that investment. How will that be done? If you look at the hierarchy above and add the numbers up for all levels there is a lot of commission for the FMO if they can exclude all of the hierarchies in the selling process. Is that possible? Yes! If you use a call center to contact clients and place them in a plan and exclude all the in between entities.

Think about it. You could pay someone $20 or $30 and hour and require them to be certified to sell Medicare plans. Once it is sold, that is pennies to acquire a piece of business as opposed to agents and upline.

Better yet, if the conglomerate (owning all the FMO’s) has the agents using the “free” system entering in future clients for the call center to role. The conglomerate gets paid either way, but you (the agent) helped all along.

It may also be possible that the conglomerate’s call center will also market to your clients directly in an attempt to establish a relationship so to be familiar when they contact them to move them into another plan without your involvement.

Why not? You told them in the USER AGREEMENT they could do that. Not to mention, there is a huge market for the data vendors to resell your clients information to all buyers too!

There has to be a reason…

There has to be a big reason why any entity would give 1.6 billion dollars of money to any company to buy up so much of a market. Investment capital people need a return on their investment. Both quickly and substantial from what they invested.

What can you do to protect your business

In 1998, I was a single father of three kids (7, 5, 18 months). I was working with an FMO and the long and short of it was he took my book of business in a dispute. That is all the money we had to live on. I was devastated and it changed me forever. I built Search & Save to help protect Medicare agents and agency’s from what I just described to you. We do not own a call center to compete against you. You own your data and the use of it with Search & Save.

My suggestion is that you stop using any “free” Medicare quoting system from your upline especially if they have been acquired by this huge conglomerate. Use Search & Save. It is less than $1 per day per user and well worth it when considering your protecting what you worked so hard to build.