CMS Re-Evaluates Commission True Up Payments

Subject: Suspension of implementation of June 5, 2009 HPMS memo on agent/broker compensation;

Impending guidance on criteria for paying initial compensation fees in 2009

Suspension of Implementation of June 5, 2009 HPMS Memo on Agent/Broker Compensation: CMS has received feedback concerning the agent and broker compensation requirements in our June 5, 2009 HPMS memorandum titled "2009 Medicare Advantage and Prescription Drug Program Agent and Broker Compensation Refinements and Compensation Rate Adjustment for 2010." While we evaluate the issues and concerns being raised, we are suspending the implementation of these requirements. We expect to issue clarifying guidance shortly.

Impending Guidance on Criteria for Paying Initial Compensation Fees in 2009: CMS has received feedback about confusion on whether agents and brokers should be paid an initial compensation fee for 2009 enrollments from a PDP to an MA plan. We believe our regulatory guidance is clear that for 2010 agents and brokers should be paid an initial fee for enrollments from a PDP to an MA plan. CMS is examining its guidance pertaining to 2009 enrollments and expects to release additional guidance shortly. Plans should contact their agents and brokers to inform them that CMS is reconsidering its guidance for 2009 and expects to release additional guidance shortly.