Key Takeaways

• Selecting an FMO without understanding their contract terms, support structure, and carrier access can severely limit your growth for years.

• You need to evaluate FMOs based on transparency, release policies, training, and compliance resources before you sign anything.

Why Your First FMO Decision Matters More Than You Think

For new and even experienced Medicare agents, partnering with the wrong Field Marketing Organization (FMO) can create long-term complications. In 2025, many agents are still locked into outdated structures or struggling to switch FMOs after realizing they’ve made a poor choice.

Your FMO relationship directly affects how you grow, how much you earn, and how easily you can scale. That’s why your due diligence must go far beyond what’s promised during a sales pitch.

1. Contract Clauses Can Bind You for Years

Many FMOs present their contract as standard paperwork. What they don’t always say is that hidden clauses can:

• Delay or deny your release from the FMO

• Require a multi-month notice period

• Limit your ability to re-contract with the same carriers elsewhere

Before signing, ask specifically about:

• Immediate vs. delayed release

• Written release guarantees

• Contract expiration terms

Even a six-month delay in release can derail your AEP and reduce your income significantly. Always get clarity in writing.

2. Transparency on Commissions Is Non-Negotiable

In 2025, CMS sets a standard compensation level, but some FMOs add additional layers or overrides that cut into your earnings without your knowledge.

Make sure to:

• Request the actual carrier commission schedule

• Confirm that you’re being paid at the full, allowable rate

• Ask if there are any shared commissions or uplines between you and the carrier

You should never be guessing about how much you’re getting paid. If an FMO won’t show you what the carrier pays directly, take that as a warning.

3. Not All FMOs Offer Real Support

Support means more than a monthly webinar. In 2025, a good FMO should provide:

• Live training on current compliance rules

• One-on-one help with contracting and certifications

• Technical assistance with quoting and enrollment platforms

• Prompt responses during enrollment season

Make sure you understand how their support system works and how accessible your point of contact will be. Test it before you commit.

4. Limited Carrier Access Can Cripple Your Sales

You can’t serve your clients well if you don’t have access to the plans they need. Some FMOs:

• Only offer contracts with a few carriers in your state

• Require you to go through sub-agencies for access

• Prioritize their own captive agents over independents

Ask for a list of carriers available in your ZIP code through that FMO. Make sure you’re not entering a partnership that will force you to say “no” to client needs.

5. Releases Can Affect Client Relationships

If you decide to switch FMOs after a year or two, you may lose access to your clients’ plan servicing tools, which can:

• Disrupt client renewals

• Delay responses to coverage issues

• Damage client confidence

Confirm whether the FMO allows you to take your book with you, and whether your CRM and data are portable. You should never be penalized for wanting to leave.

6. Compliance Isn’t Optional

With 2025 CMS rules in full effect, you are responsible for:

• Recording all marketing and enrollment calls

• Maintaining accurate permission-to-contact records

• Using up-to-date disclaimers in communications

Your FMO should actively help you stay compliant with current regulations. If they aren’t offering updated training, audit protection, or tools that meet CMS standards, they are putting your license at risk.

7. Technology Tools Should Be Agent-First

In today’s market, your efficiency depends on the tools you use. FMOs may promise CRMs, quoting tools, and enrollment platforms, but often:

• The tools are outdated or underdeveloped

• Access is lost if you leave the FMO

• Features are gated behind production thresholds

Ask for a demonstration and insist on documentation that outlines what’s included and whether you retain access if you change FMOs.

8. Layers of Overrides Hurt Long-Term Earnings

Each person between you and the carrier is taking a portion of your commission. Some FMOs have:

• Multiple upline levels you’re unaware of

• Shared contracts where part of your pay supports another agent

• Structured overrides that lock you into lower rates

Before committing, ask to see a hierarchy map that shows exactly who is in your upline and what each level earns from your production.

9. Marketing Support Is Often Overpromised

It’s common to hear that you’ll get leads, advertising help, or marketing co-op funds. But often:

• Leads are shared among agents

• Co-op funds have unrealistic production requirements

• Advertising support is only offered during AEP

You need to know:

• How leads are generated and distributed

• Whether there are any costs or strings attached

• What year-round support exists beyond peak season

Request actual examples or metrics before assuming any marketing assistance will materialize.

10. Ask the Right Questions Before You Sign

To make an informed decision, ask any prospective FMO:

• What is your release process and how long does it take?

• Do I receive top-level commissions, and can I verify with the carrier?

• Which carriers are available in my state through you?

• What tools do I keep access to if I leave?

• What support do I get during AEP and OEP?

• How do you help me stay compliant with CMS?

• Who do I contact when I need help, and how fast will I hear back?

If you don’t get clear, written answers, walk away.

Choose Carefully, Grow Confidently

Your FMO should be a partner, not a gatekeeper. The wrong choice today can cost you growth, income, and even your client relationships for years. You need to choose one that respects your independence, supports your business goals, and gives you room to scale.

At BedrockMD, we offer transparent agreements, full commission access, year-round support, and the tools agents need to grow with confidence. Whether you’re just starting out or looking for a better fit, we’re here to help you avoid the pitfalls that hold others back.

Sign up today and let’s build your business on a foundation that puts you first.