ntbktrader
Expert
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Blue Cross and Blue Shield of Texas (BCBSTX) is announcing commission changes for producers in the mid- and large group markets.
As a customer-owned health insurer, we place our highest priority on our commitment to the affordability of care for our customers. That is why we continue to invest in new programs and networks that focus on lowering the cost of care. We have also invested in new technology, process improvements and infrastructure changes necessary to lower our administrative costs.
Percent-of-premium commission rates have seen inflationary increases year-over-year. BCBSTX must address the critical issues affecting health care financing, access and delivery. As the marketplace evolves, we, in turn, must adjust our producer commission models to continue offering sustainable health options.
We remain committed to our producer distribution channel and continue to invest in new processes, tools and technology to help you manage and build your business. As we assess this segment of our business and look ahead with affordability and sustainability in mind, we have determined that an adjustment to our producer commission model is necessary.
New Commission Schedule
In the mid- and large group health markets, the current compensation schedule will change from a percent-of-premium to a per-contract, per-month (PCPM) compensation schedule.
• New mid-market business quotes with effective dates on or after Nov. 1, 2018, will include a flat $30 PCPM commission unless otherwise specified.
• Compensation for new large group business with effective dates on or after Nov. 1, 2018, will be negotiated on a PCPM schedule.
• For existing business in both markets with renewal dates on or after Nov. 1, 2018, your current percent-of-premium commission will be converted to the equivalent PCPM rate.
The changes will apply to all fully insured major medical policies in the mid- and large group markets. It will not apply to self-funded programs, stop loss coverage, stand-alone ancillary or small group policies.
As a writing agent, you are a vital resource to our market distribution. We thank you for your steadfast partnership and support. View the new PCPM compensation schedule by logging in to Blue Access for ProducersSM, and then clicking on the Texas Compensation Schedule – Group Markets link under the PDFs & Related Information section.
As a customer-owned health insurer, we place our highest priority on our commitment to the affordability of care for our customers. That is why we continue to invest in new programs and networks that focus on lowering the cost of care. We have also invested in new technology, process improvements and infrastructure changes necessary to lower our administrative costs.
Percent-of-premium commission rates have seen inflationary increases year-over-year. BCBSTX must address the critical issues affecting health care financing, access and delivery. As the marketplace evolves, we, in turn, must adjust our producer commission models to continue offering sustainable health options.
We remain committed to our producer distribution channel and continue to invest in new processes, tools and technology to help you manage and build your business. As we assess this segment of our business and look ahead with affordability and sustainability in mind, we have determined that an adjustment to our producer commission model is necessary.
New Commission Schedule
In the mid- and large group health markets, the current compensation schedule will change from a percent-of-premium to a per-contract, per-month (PCPM) compensation schedule.
• New mid-market business quotes with effective dates on or after Nov. 1, 2018, will include a flat $30 PCPM commission unless otherwise specified.
• Compensation for new large group business with effective dates on or after Nov. 1, 2018, will be negotiated on a PCPM schedule.
• For existing business in both markets with renewal dates on or after Nov. 1, 2018, your current percent-of-premium commission will be converted to the equivalent PCPM rate.
The changes will apply to all fully insured major medical policies in the mid- and large group markets. It will not apply to self-funded programs, stop loss coverage, stand-alone ancillary or small group policies.
As a writing agent, you are a vital resource to our market distribution. We thank you for your steadfast partnership and support. View the new PCPM compensation schedule by logging in to Blue Access for ProducersSM, and then clicking on the Texas Compensation Schedule – Group Markets link under the PDFs & Related Information section.
