2016 Individual Commission

Oct 6, 2015

  1. saintstigers
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    saintstigers Guru

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    Any national carriers release their 2016 comp yet?

    Our local Blues just released their 2016 Individual Comp. It used to be 8% first year / 2% on renewals. Now it's:

    New Sales Commission
    $15 per contract per month until renewal
    Renewal Commission
    2% of Total Billed Premium by Month

    They basically said they had to cut comp because:

    - They are experiencing cost increases that cannot be sustained. For their individual market members, they are paying more for healthcare, taxes and expenses than they are getting through premium payments, and these plans are operating at a significant loss.

    - Rising costs of medical care driving up the cost of health insurance. Rates must increase to cover healthcare services.

    - People need more healthcare than expected. Premium price is directly tied to how much it costs to cover healthcare for everyone in the risk pool.

    - In our opinion, the healthcare reform law lacks teeth to do what it was intended to do. The law was supposed to require all people (with certain exceptions) to sign up for health insurance, so there would be a mix of health conditions in the risk pool that balanced out costs. Instead, the law doesn’t do enough to get healthier people to sign up, penalties are not strictly enforced if people don’t have health insurance, and no documentation is required for Special Enrollment Periods. This creates an environment where people can have healthcare on demand –without paying penalties or being held accountable.

    - Taxes and fees have more than doubled under the law, and insurers have to factor in these increased costs when setting rates.

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    Here's the other carriers comp in my market:

    Humana 3% year 1, 3% renewal

    UnitedHealthOne 7% year 1, 3% renewal
     
  2. Yagents
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    Yagents Guru

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    Time to find a new career or product to sell. Last year, enjoy it.
     
    Yagents, Oct 7, 2015
    #2
  3. kgmom219
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    kgmom219 What's Next?

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    Time for NAHU to earn their money and get us a MAPD-type commission on indy policies....

    Or to get more Med Supps.

    One of those.
     
  4. AllenChicago
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    AllenChicago Guru

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    Which BCBS, Saintstigers? You didn't mention the state.
     
  5. TN_agent
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    TN_agent Guru

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    They are never going to do that as long as people are free to move in and out of the indy market at will. Not quite the same as Medicare.
     
  6. G.Gordon
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    G.Gordon Guru

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    At 2 and 3% the young singles that are service intensive are looking a little less appealing. We've already cut back on the "savior" calls when they don't get documents in or make payments to ONE call, after that, they are not worth the work we already invested and will most likely continue to be trouble. We're at a 20% or better attrition rate with on-exchange business. Some of the most irresponsible and unaccountable people I have ever encountered.
     
  7. saintstigers
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    saintstigers Guru

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    The Great State of Louisiana
     
  8. kgmom219
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    kgmom219 What's Next?

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    Fine.

    What's your solution?

    Because what NAHU is doing now is clearly not working.

    And technically, you aren't supposed to be able to move in/out at will.
     
  9. saintstigers
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    saintstigers Guru

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    I think the carriers believe that healthcare.gov and the navigators provide a more affordable distribution channel than agents...
     
  10. somarco
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    somarco That Medicare Expert Guy

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    True dat. Agents create extra layer of expense and admin not needed with direct or hc.gov business. GOOD agents also understand adverse selection and steer client's to plans other than lowest price
     
    somarco, Oct 7, 2015
    #10
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