AHCP--Holy Crap!

[YouGotMyMoney]

So, by now I'm sure we all have received the email outlining the UHC/Aetna 6 month advanced deal with AHCP.

Here's the bullet points:



UHC and Aetna commissions will be dropped by 1%.

5% admin fee on all monies advanced.

Agent's will advanced on the first 6 months, months 7-12 will be kept by AHCP in exchange for taking the liability of the advance.


Wow, what a great deal! Sign me the eff up right now!

 

[dgoldenz]

Count me in!

 

[Crabcake Johnny]

"Kept" is the wrong wording. Held until the account clears would be correct. But yes, if any agent wants to continue being advanced 6 month for Golden Rule those are the terms. If not it's a decreasing advance.

These are the full terms:


Changes to Golden Rule and Aetna Advance and Commission Payment Policies


Dear Agents, Managers, and Divisional Presidents:

Health Care Reform has injected a substantial amount of uncertainty into our industry, especially in the area of commissions. AHCP's dedication to our agents is unparalleled in our industry. We are focused on providing extraordinary incentives and opportunities for you, even while facing the challenging climate of healthcare reform. Consistent with that we are introducing an exciting new program designed to help take some of the uncertainty out of your commissions. This program is designed to help provide income stability while we transition our business through the introduction of new products.

There are indications that the minimum loss ratios and other provisions in the Health Care Reform legislation might substantially reduce commissions as early as January of 2011. We don't pretend to know the amount or the timing of the reductions, but some of our carriers are predicting commissions as low as single digits. Obviously, trying to offer advances in such a climate is a risky venture. Many carriers and our competitors have responded to that risk by reducing advances substantially.

It is our belief that we can do better. We are currently working on new supplemental products that will provide additional commission opportunities. We believe that the new products we are working on will be a great success and will help replace the income loss that could result from reduced commissions on major medical products. While those products are being introduced, we believe that it is important to provide a program to help with the transition.

Our program will offer six month advances on Golden Rule and Aetna policies written between July 31 and December 4. In return, in addition to months 1-6, AHCP will retain earned commissions received for months 7-12 to apply against the advance. If commissions are lowered we take that risk, therefore, if earned commissions are lowered to a level that will not repay the advance, you have no liability. Normal chargeback rules still apply. If they remain the same we will give credit for any surplus collected on the total group of business for all agents. There are some limits and qualification requirements. The details are provided in the attached sheet.

We are excited about this business and the opportunities for us and for you. Please contact Agency Services with any questions.

As part of AHCP’s commitment to providing the best possible advance opportunities and
commission levels the following changes take effect on July 31, 2010.
• AHCP will advance 6 months of commission on Major Medical policies issued by Golden Rule
and processed by Aetna from July 31st through December 3, 2010. In addition to months 1‐6,
in exchange for commissions collected by AHCP for months 7‐12, AHCP will assume the
liability for deficits related to this program as a result of commission reductions on unearned
premium by Aetna or Golden Rule.
o This arrangement is designed to offset the expected decrease in 1styear
commissions
associated with the “Minimum Loss Ratio’’ provision (MLR) in the Healthcare Reform
Act that could take place as early as January 1, 2011. Current chargeback rules will
apply.
• Golden Rule and Aetna 1st year Major Medical commissions will be reduced by 1% effective
July 31, 2010.
• A non‐refundable 5% administration fee will be collected on monies advanced.
• From December 4th through December 31st, commissions on new policies will be paid on an
as earned basis or upon an advance structure to be determined in the future.
• To qualify for the 6‐month commission advance opportunity agents must be in “good
standing” and be Golden Rule and/or Aetna appointed agents prior to October 1, 2010.
• Good standing is defined as an agent with less than a 12‐month debit balance payoff.
• There is no limit on the number of policies that qualify for advances under this program in
August and September.
• For October 1‐December 4th an agent will receive advanced commissions on up to 125% of
the average number of policies issued in August and September. If number of issued policies
exceeds 125% the agent will receive commissions on an as earned basis for the excess
policies.
• If an agent does not want to receive commission advances, he or she may email
[email protected] and request that their commissions are paid on an as earned
basis.
If the total amounts collected by AHCP under this program for all agents exceeds the
amount advanced for all agents, AHCP will credit accounts as appropriate, in its discretion,
to return any surplus on or before January 31, 2012.
AHCP reserves the right to make modifications to the commission and advance structure. This
Commission rate supersedes and replaces any previous commission rates for Golden Rule and Aetna,
and supplements thereto, with respect to policies issued on July 31, 2010 through December 3, 2010.
This document is an amendment to the Agent Guidelines that are a part of your Producer
Agreement. All terms contained in those documents remain in effect unless specifically
modified by this document. Your acceptance of commissions or compensation under the
program set forth in this document constitutes your acceptance of the terms contained in this
document and constitutes an irrevocable assignment of all first year commissions from
policies issued under the program.
This Commission schedule is effective July 31, 2010.

 

[ksigmtsu]

For advances its a better deal than Golden Rule and Aetna are giving direct.

 

[AllenChicago]

I contract directly with companies, because agencies have burned me twice in the past 10 years. Doesn't this reduction in commissions based on what "may" happen make America's Health Care Plan agency's agents suspicious? Gave me a bad Deja-Vu just reading their letter, and I have never even heard of AHCP before reading this post.
-Allen in Chicago

 

[medx]

I contract directly with companies, because agencies have burned me twice in the past 10 years. Doesn't this reduction in commissions based on what "may" happen make America's Health Care Plan agency's agents suspicious? Gave me a bad Deja-Vu just reading their letter, and I have never even heard of AHCP before reading this post.
-Allen in Chicago

'
Medigap Supplemental medicare supplemental Insurance by Gerberand Blue Cross Blue Shield Part D

it is wise and safer to go direct.

 

[somarco]

Past exposure to AHCP did not give me warm fuzzies. I agree that going direct is the better choice. Since World fired me for lack of production I don't have any health appointments through IMO's.

Just noticed something. HCO (Health Choice One) used to be a prominent advertiser here. Are they still paying the freight and I have just now noticed the ads are gone?

 

[HealthGuy]

What an *** move on World's part to FIRE agents for non production. Like it costs them anything to keep you registered. Idiots. Typical of a third world carrier.

 

[COInsguy]

Past exposure to AHCP did not give me warm fuzzies. I agree that going direct is the better choice. Since World fired me for lack of production I don't have any health appointments through IMO's.

Just noticed something. HCO (Health Choice One) used to be a prominent advertiser here. Are they still paying the freight and I have just now noticed the ads are gone?

I'm looking @ an HCO ad just as I read your post. HCO is also promoting the AHCP advances to agents and through IHIAA and through emails they've sent out to agents for their United/Aetna contracts. Just seems like putting a bandage on a broken leg and getting agents to write as much as possible for as long as possible instead of addressing the real problem.

But rest assured, AHCP is developing supplemental products to make agents rich! I loved that email haha. I also see all the big agencies really trying to teach you how to make the "Total Protection Package" Sale....like that is a new idea or something! In all fairness the AHCP deal is not to screw agents out of comp and seems set up as a fair trade for those who want to drink the coolaide

 

[passivesf]

World just got rid of me for non production as well... no other carrier does that...kind of strange