What Is an FMO and How Can It Help Medicare Agents?

What is an FMO, and how can this type of organization support your independent insurance agency?
what is an fmo?
1 Apr 2022

What Is an FMO and How Can It Help Medicare Agents?

What is an FMO? FMO, IMO, NMO … you may have heard these terms bandied about between your fellow insurance agents without knowing what they meant. There are so many acronyms, who can keep track?

In this case, all three describe organizations with very similar purposes. Specifically, an FMO is a Field Marketing Organization, while an IMO is an Independent Marketing Organization, and an NMO is a National Marketing Organization. So what do these organizations do? Well, the concept is simple. They market, sell and distribute insurance products for agents like you. 

What is an FMO?

A Field Marketing Organization (FMO) is an organization that handles the marketing side of your business.

You know your goal. It’s to find the right Medicare policy for your clients and help them sign up. That means you want to focus your energy on growing your business. When you work with an FMO that handles Medicare policies, they can help you reach your business goals more effectively and efficiently.

Here’s a breakdown of how working with an FMO will improve your business.

#1. Provides support to you and your business

Every small business owner needs help. The product and sales consultants that work for the FMO will help you conduct market research and determine what Medicare products your clients need most. But that’s not all. Their staff can speed up your contracting process, handle commission audits and deal with licensing issues. All while you focus on selling!

An FMO is simply a great support team for your agency. When you hire an FMO, they come with specialized training for you, market-tested methods for growing your business, and even help with your most challenging cases. 

#2. Offers the plans your clients want

To stay competitive in the Medicare insurance industry, you have to offer the plans your clients want. The agents and brokers with an FMO have access to the best national—and regional—health plan and insurer options. This means when you work with an FMO, you greatly increase your ability to find the right Medicare insurance plans for your senior clients. 

With an FMO’s specialized and name brand carriers, you’re suddenly a whole lot more competitive!

#3. Gives you access to quoting and enrollment tools

FMOs provide you with access to advanced marketing tools. Most FMOs let you use their free CMS-approved quoting tool, so you can easily compare and contrast the prices of different types of Medicare plans for your clients. With this quote optimization, you’ll address the client’s specific and changing insurance plan needs with fewer roadblocks and challenges. 

In addition, within those tools, some FMOs give you access to supplemental policies your clients might want or need.

#4. Doesn’t affect your commissions 

In case you’re concerned about your commission, don’t be. There will be no reduction to your commission when you use an FMO. An FMO usually receives an override from the insurance companies they contract with to support the lead generation, advanced technology and training they provide to independent agents. Of course, this override payment from the insurance company is completely separate from your commission. 

And, don’t forget, FMOs can experience chargebacks—just like you!

#5. Allows for your independence 

You chose to become an independent agent, so you know you value your freedom. Don’t think that working with an FMO means giving up your agency (no pun intended!). But do your research, and find an FMO that has an Open Release Policy. Yes, you still have to sign contracts with most FMOs. But the Open Release Policy allows you to collaborate with an FMO—no strings attached.

So, what is an FMO? FMOs are here to support you. As a team of marketing consultants, FMOs provide the tools you need to achieve your mission as a Medicare agent. Contact us today for more information. Get that marketing burden off your shoulders!