If a client disenrolls from a Medicare Advantage plan within three months, what happens to the agent's compensation?

When a client disenrolls from a Medicare Advantage plan within three months, the agent's compensation is typically subject to recoupment of the entire amount previously paid. This policy is in place to protect the financial integrity of the insurance offerings and ensure compliance with regulations that govern the Medicare program.

When agents enroll clients, they receive compensation based on the expectation that those clients will remain in the plan for a minimum duration. A disenrollment within a specified period, such as three months, indicates that the client did not maintain the plan long enough for the agent's compensation to be justified. Therefore, recouping the full compensation aligns the agent's payment structure with the client's retention and stability in the plan, ensuring that agents are incentivized to provide proper guidance and support to their clients.

Understanding this helps agents manage their expectations around compensation and highlights the importance of client retention in the Medicare Advantage market.