Change is the word of the year!
The Medicare Field Marketing Organization (FMO) landscape continues to evolve right in front of our eyes as market demands, regulatory changes with CMS, and consumer expectations shift. Just think about the shift in chronic conditions as one example, according to the National Council on Aging (NCOA), nearly 95% of adults 60 and older have at least one chronic condition, and nearly 80% have two or more.
Pair that with provider network overhauls and benefit cuts from Medicare Advantage plans, the FMO landscape is movin and groovin!
As FMOs play a vital role in connecting insurance carriers, independent agents, and beneficiaries, staying ahead of trends is essential for maintaining a competitive market position.
Here are five key trends that I believe are shaping the Medicare FMO space more than ever.
Tech-Driven Efficiencies
As you would expect, the established FMOs are increasingly leveraging emerging technology to streamline operations and improve the agent experience. Tools such as customer relationship management (CRM) software, quoting tools, and enrollment platforms are becoming standard offerings, and now the industry seems to be embracing the bells and whistles a lot more.
- Automation: Automation is reducing human error, not just in reporting, but in marketing and managing the customer experience. Agents are able to focus more on their customers and less on minutia when leveraging the right tools.
- Data Analytics: Real-time data insights help agents identify growth opportunities and understand client needs better. FMOs are getting better at capturing customer data and distributing book of business data to the agents of record to allow them to provide more value to their customers.
- Seamless Integrations: Adopting platforms that integrate quoting, compliance checks, recorded calls and commission tracking into one solution. This solution is still evolving, but we will see big improvements in 2025 and beyond.
Agents expect these tools to compete effectively in the Medicare space.
Increased Focus on Compliance
As the Centers for Medicare & Medicaid Services (CMS) enforce stricter compliance regulations on both FMOs and TPMOs, FMOs are stepping up their support for agents to avoid potential penalties.
- Compliance Training: FMOs are offering enhanced training programs to ensure agents understand the latest rules. Just look at the new LIS SEP rule, I can see a lot of people getting in pinch because they aren’t fully aware of the massive impact it will have on 2025 sales.
- Just-in-Time Appointments (JIT): JIT has been key to the life insurance side of our business, and now many carriers are adopting JIT processes to reduce risks and costs associated with agent appointments.
- Monitoring & Auditing: Regular audits and real-time monitoring tools are helping FMOs maintain regulatory alignment across their networks. Very similar to the Jornaya tokens on lead forms, tools are creating checks and balances that protect the customer.
FMOs that simplify compliance are simply, more attractive.
Product Diversification
There is nothing new about holistic selling, people just seem to have forgotten about it.
With an aging population and growing demand for ancillary benefits, Many FMOs are reprioritizing their product and contract offerings beyond Medicare Advantage and Supplement plans.
- Ancillary Products: Dental, vision, hearing, and hospital indemnity products are being bundled with core offerings to appeal to consumers seeking comprehensive coverage. Will everyone buy, no, but you should expect a push in training on how to properly present bundled solutions.
- Medicare + Medicaid Integration: Dual-eligible products are gaining traction as managed care organizations continue to negotiate with CMS. It’s historically a high risk market and with the recent crack down on LIS special elections, you can expect to see more focus on optimization of that customer segment.
- Innovative Plan Designs: FMOs are partnering with carriers to provide agents access to unique plans tailored for niche markets. For example, Gold Kidney is only in two states and has cornered their target market for CSNP.
Diversified offerings allow FMOs to help agents grow their books of business in match the changing needs of the senior market.
Agent Development
FMOs have to provide more value and continue to invest in agent training.
- Onboarding: Comprehensive and simple onboarding ensures new agents hit the ground running with the ability to begin making sales within their first 30 days.
- Continued Education: Regular trainings and certifications keep agents up-to-date on market changes and sales strategies. Much of this is coming from data analytics and stronger engagement with agents who have proven sales habits that drive production.
- Marketing Support: FMOs are helping agents with lead-generation strategies, including digital marketing campaigns and co-branded materials. You should expect this to be paired with automation technologies that strengthen the customer engagement and education.
The average age of licensed agents is in the 50’s and much of what we see happening is directly related to supporting the next generation of senior market advisors and insurance agents in others customer segments.
Strategic Partnerships
We have all scene the consolidation, and it may have slowed, but certainly hasn’t stopped!
As organizations merge to achieve economies of scale and expand their footprints, they are aggregating opportunities and capabilities.
- Mergers & Acquisitions: Larger FMOs are acquiring smaller ones to enhance their reach and product expansion targets.
- Partnerships with Insurtech Firms: Collaborations with technology companies are enabling FMOs to offer cutting-edge tools and better agent support. A good example of this are the companies that have recently emerged that focus on simplifying the scope of appointment processes.
- Carrier Relationships: FMOs are doubling down on their relationships with carriers to negotiate commissions on behalf of the agents as well as create exclusive products for niche markets.
These partnerships are redefining the speed to market for agents and likely will improve the success rate of becoming licensed and actually sticking with it longer than 1 year.
Conclusion
We’ve all been waiting for it, and insurance industry has finally decided to catch up with the rest of the world. It feels like we have always been 20 years behind.
The Medicare FMO landscape is becoming more sophisticated with technology adoption and massive regulatory changes. FMOs that embrace these trends and position themselves as comprehensive, customer focused partners will survive.
Whether you’re an agent, carrier, or healthcare provider, understanding these trends will help you make better choices regarding partnerships with FMOs.
SMA plans to be part of the solution and make sure we are keeping our teams in tuned with changes and opportunities to continue to scale growth and support the underserved senior market.