BCBSFL 2011 Commission Cut

[compliance1]

Well like everyone else BCBSFL has implemented their cuts for the new year. Just a flat fee on under 65 and it pays to be a South Florida agent because their flat rates are higher than the rest of Florida. They also went back to a flat fee for a Med Sup. It's almost not worth it for MAA's and certainly not for a captive agent. Looks like BCBSFL wants to take control of the selling process and let their under trained corporate staff sell their polices.

I've been thinking a lot about all the insurers cutting commissions because of MLR and it seems to me that it would be unnessary to cut commissions if they just cut corporate employees who certainly don't know their products and most don't. Corporate Insurers are definitely overstaffed with dead weight.

 

[Crabcake Johnny]

So what's the fee per app?

 

[YouGotMyMoney]

Also BCBSFL is dropping appointments if you are not actively selling.

 

[medx]

Well like everyone else BCBSFL has implemented their cuts for the new year. Just a flat fee on under 65 and it pays to be a South Florida agent because their flat rates are higher than the rest of Florida. They also went back to a flat fee for a Med Sup.Medicare Supplement Insurance It's almost not worth it for MAA's and certainly not for a captive agent. Looks like BCBSFL wants to take control of the selling process and let their under trained corporate staff sell their polices. Medicare Supplements

I've been thinking a lot about all the insurers cutting commissions because of MLR and it seems to me that it would be unnessary to cut commissions if they just cut corporate employees who certainly don't know their products and most don't. Corporate Insurers are definitely overstaffed with dead weight.

Thanks for the information, by the way, how much is the "Flat Fee" ?

 

[compliance1]

It's a strange setup the richer plans pay more than the basic ones. I have not looked at the contract since this afternoon but from what I remember nothing pays over $300 other than S Florida and if I read the contract right when you're writing a family you only get the flat fee for applicant and the others on the app are treated as add ons for $80 I believe a piece. This is not an MGA contract. Over 65 took a beating also. To the captive agent working for a MGA I think they're pretty well screwed and if it was me would leave the business. What am I saying I probably will leave anyway, at least I'm trying. One thing I don't understand is why S Florida (same contract) but commissions are higher. Unless the larger MGA's down there own BCBSFL.

 

[Crabcake Johnny]

If nothing pays over $300 that's around a 50% cut.

 

[compliance1]

It sure looks that way. But what I can see some of the policies in S Florida pays I think around $368, now that is not a captive agent which will be much less. Business just started coming back now I don't see why I would want to stay around with them I would be losing a bunch. Oh I should say I'm a long time captive agent so I do make more than most captive's but I was considering becoming an MAA and this is the contract I saw today.

 

[Blue]

You guys may want to hold judgement on the new commission comp for Blue. Give it a week or so and keep checking your mail.

 

[compliance1]

Well I was just thinking this morning why our company has not mentioned this to us and if it was just MAA's they may be changing or everyone. If it's everyone and me being a captive agent I'll hold judgement against my MGA. But the MAA contract I saw from a current MAA was not all that attractive and for a captive on the lower end of the stick doesn't sound good.

 

[Blue]

We have been told that the contracts were based on certain false assumptions. The original communication we had was that the new structure was supposed to approximate the prior 22% CGA and 18% MAA structure. They reaffirmed that this was still their intention. We will see.