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Anthem Blue Cross 10% Commission Obamacare
- Thread starter SamIam
- Start date
- 3,384
I am sure it could be accurate. As Rick said, giant sucking sound at that rate.
- 2,908
Haven't even gotten to Obamacare yet. More to come.
WIHealthAgent
New Member
- 9
10/4 in Wisconsin as well. Got my letter the other day. I was at 15/8.
- 2,024
I am sort of confused by the large drop in renewal commission, initial assumptions were that the renewals would stay around 5-8%, but the first year would have to drop by 50%.
I had one carrier rep telling me they expected to go from 20-5 to 10-8.
I had one carrier rep telling me they expected to go from 20-5 to 10-8.
- 14,808
10% wipes out most health insurance agents who only sell individual health and work off internet leads. It's literally a 50% pay cut.
The dilemma then would be for producers who were actually earning six figures to drop to 50K instead of going back out into the work force. Some modest cross selling could put an extra 10K to 15K a year.
However, producers who were only earning 50K would likely not be able to accept 25K.
Judging from conversations I've had with "die hard" individual health agent who have tried other lines and failed, they would rather stick it out and try to make it work.
10% is right on the cusp of a "do-able" career. Less than 10%? Not a chance. There have been rumors of less competition and "better" internet leads. As there's already significantly less competition (based on my conversations, the field in general is down around 50%) I have not yet heard a single agent comment on how much more business they're writing due to either less competitor or "better" leads." In fact, to the contrary the comments I've heard are leads have never been worse.
But brace yourselves because in my opinion, a few carriers are going to get creative with new product offerings mainly designed to offer high agent compensation. Watch for it.
The dilemma then would be for producers who were actually earning six figures to drop to 50K instead of going back out into the work force. Some modest cross selling could put an extra 10K to 15K a year.
However, producers who were only earning 50K would likely not be able to accept 25K.
Judging from conversations I've had with "die hard" individual health agent who have tried other lines and failed, they would rather stick it out and try to make it work.
10% is right on the cusp of a "do-able" career. Less than 10%? Not a chance. There have been rumors of less competition and "better" internet leads. As there's already significantly less competition (based on my conversations, the field in general is down around 50%) I have not yet heard a single agent comment on how much more business they're writing due to either less competitor or "better" leads." In fact, to the contrary the comments I've heard are leads have never been worse.
But brace yourselves because in my opinion, a few carriers are going to get creative with new product offerings mainly designed to offer high agent compensation. Watch for it.
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I hate to rain on the cross-selling parade, but it is that way across the board. A lot of people are afraid to move right now.
Now, don't take that to mean there isn't business out there, there is tons of it, but anyone who thinks cross-selling is going to be easy is kidding themselves. Quality prospects for all lines see health insurance as a necessity, life, DI, annuities, etc., not so much.
This sudden ability for agents to cross sell other things amazes me a bit. It suddenly sounds so easy, makes you wonder why people weren't doing it all along.
Lets see, previous advice was to focus on one thing and be the expert, now its cross-sell till you make up the difference. I think this is a bit of a stretch.
Here is the problem, assuming an agent was working full blast previously, where do you find the time to cross-sell? Granted, a cross sell takes less time, but in general, its a smaller thing, i.e., less commission. This time spent takes away from time to sell the main product.
John - I'd say you are about right. 50% overall reduction, maybe 10% for additional volume, then add 15% back for cross-selling, you are around 75% of your previous income, working a bit harder to get it. Only other option I see is to re-think how you do business.
Dan
Lets see, previous advice was to focus on one thing and be the expert, now its cross-sell till you make up the difference. I think this is a bit of a stretch.
Here is the problem, assuming an agent was working full blast previously, where do you find the time to cross-sell? Granted, a cross sell takes less time, but in general, its a smaller thing, i.e., less commission. This time spent takes away from time to sell the main product.
John - I'd say you are about right. 50% overall reduction, maybe 10% for additional volume, then add 15% back for cross-selling, you are around 75% of your previous income, working a bit harder to get it. Only other option I see is to re-think how you do business.
Dan
- 14,808
In my case - laziness. When I was selling indie health and earning six figures it was tough to convince me to dig in and cross sell anything.
I did the occasional life cases only when my clients brought it up. However, with a 50% comp drop I probably could have made up a lot of financial group by really digging in and cross selling life.
I'm more of a fan of "legitimate" cross sells then these ancillary products agents are told to push. Not that they're not legitimate products, but there's a difference between selling a product that's truly beneficial to your client and selling something only because you need to boost your income.
I did the occasional life cases only when my clients brought it up. However, with a 50% comp drop I probably could have made up a lot of financial group by really digging in and cross selling life.
I'm more of a fan of "legitimate" cross sells then these ancillary products agents are told to push. Not that they're not legitimate products, but there's a difference between selling a product that's truly beneficial to your client and selling something only because you need to boost your income.
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John, where are you getting these comp "drops" from? Commission decreases apply to NEW business, not what is already on the books. Do you have different information?
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Not what I am being told by Anthem this morning. Hard numbers to be out in Cali within 3 weeks, but they say it won't be 10/4 in Cali. Anthem treats Cali differently because of production level (more than all other Anthem states combined).For what it's worth, my source is a major California broker with Anthem.
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