Anthem Blue Cross 10% Commission Obamacare

[Dave020]

CA is coming, I heard from my RSM no word yet but it "is coming".

CA pays highest of the states 20%/10% on full premium (including increases). Curious to see what we get out here.

 

[trumbullcity]

State regulators find that the firm's proposal meets the requirement that 70% of premiums go for medical care. As a result, they can't stop the increases, which average 14%. Blue Shield also is cleared to raise its rates.
California insurance regulators cleared the way Wednesday for Anthem Blue Cross to implement scaled-back rate hikes after a previous increase was canceled amid an uproar over its size.

 

[medx]

I just got a call from a friend said Anthem Blue Cross new Commission Rates are going to be 10%. He said he got the letter today. I'm in IL so I don't deal with Anthem but he does. So thats what Anthem will be paying because of ObamaCare.

I just thought I put that out there Medicare Supplements.

Anyone know what the 2nd year % will be ?

 

[jbage007]

Just heard from one of my "sources" in Cali that Anthem is going 10/4, BUT, with the caveat that the 4 is based on ORIGINAL ISSUE PREMIUM ONLY.

He also thinks this is a "base" and that "real producers" will be able to juice more, either directly or indirectly (bonuses, etc.).

 

[GreenSky]

At 10/4, there won't be very many producers left in CA. All the other carriers will follow suit.

Fortunately, I think we'll be able to get $50 from the exchange to make up for it.

Rick

 

[jbage007]

At 10/4, there won't be very many producers left in CA. All the other carriers will follow suit.

See, that's the positive thing in this mess.......

 

[GreenSky]

See, that's the positive thing in this mess.......

True and the Black Plague opened up a ton of jobs in Europe.

Rick

 

[ksigmtsu]

Rick, I keep praying maybe the exchange commission will look like MA. 200 bucks per adult, 50 per child or something, 6 year, regulated.

That to me would make it workable. It's a huge pay cut for people who can't work the volume, but I'd sit here all day doing medical instead of driving to 5 a week doing medicare plus the random 1-2 health apps a week.

 

[Dave020]

Anthem has always paid its highest commission levels in California. I don't see 10/4 (it could happen, we'll have to wait and see) for Cali, maybe 12/6 something like that.

I doubt Anthem will announce Cali until around 11/30 so they can use the 30-day contract rule and not tip off to the other carriers.

Blue Shield CA is running very lean on MLR, so if Anthem does go 10/4 I would expect Shield to come in better and eat their lunch on IFP underwritten.

 

[stuy119]

4.5% for small group? I can live with that. It's a pay cut, but it's doable and will force many out of the business, so volume should make up for it.

Combine that with cross-sell opportunities and a few other things, and I'll be fine. I'm much less worried than I was before if that's where it stands.