Blue Commission Announcement in Florida
- Thread starter Agentinjax
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- #12
Agentinjax
Expert
- 95
SMDH. it's just sad.
It depends on your Florida blue contract. Gross commission is pretty good. Sounds like these guys are on 50/50 splits. Gross is $270-$550 PMPM. Split in half hurts. $5-$10 Pmpm renewals. Plus bonuses. I have a 100% contract so I'm alright, plus we have the best ppo network in Fl and half the counties we are the only player on the exchange.
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- #14
Agentinjax
Expert
- 95
275-550? I would sell these things like hotcakes. I must have the worker bee contract. 5-10 pmpm? Not even 5 per month for most of ours. Bzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzzz
- 142
No way you can work for that! Only way it makes sence is a lost leader for other business. So not worth the headache!
- 126
The individual market in NJ has always been that way. On average about $10 PEPM with some as low as $4.50 on renewal. I only write them now for friends or on referral. We are beginning to switch those clients who choose to move employees to individual policies to a fee based consulting arrangement. Its the only way to make a living in this market.
Right now group pays 5%. So a company currently paying $200,000 in premium would generate about $10k a year in commissions. Under an individual arrangement, that commission would go to about $3600 a year. Thats about a 70% reduction in commissions. So we decided to start moving to a fee based arrangement and work as consultants rather than brokers on that business.
I think this will be the way the market changes as commissions continue to either be reduced or individual policies become the norm. I simply cannot see how a company can continue to offer health insurance and pay the lion's share when costs are 60% higher. Unfortunately, I believe employer paid insurance on true group policies, will become a thing of the past because of this law.
Right now group pays 5%. So a company currently paying $200,000 in premium would generate about $10k a year in commissions. Under an individual arrangement, that commission would go to about $3600 a year. Thats about a 70% reduction in commissions. So we decided to start moving to a fee based arrangement and work as consultants rather than brokers on that business.
I think this will be the way the market changes as commissions continue to either be reduced or individual policies become the norm. I simply cannot see how a company can continue to offer health insurance and pay the lion's share when costs are 60% higher. Unfortunately, I believe employer paid insurance on true group policies, will become a thing of the past because of this law.
- 2,128
I don't believe here in Florida we can charge a fee, it would help if we could charge a consulting fee or appointment fee.
- 126
So, you can't be a insurance business consultant and charge fees in lieu of commissions? That seems strange. I know a lot of the bigger houses operate on a fee based model all together for their large groups. I was certain they operated that way all over the country.
I still don't have a compensation schedule from our wonderful, incredibly cooperative friends at Florida Blue.
My CGA is still looking for clarification, the plan must really, really suck even worse than I thought.
At this point in time I don't even care, though, they made their bed, let them sleep in it...
My CGA is still looking for clarification, the plan must really, really suck even worse than I thought.
At this point in time I don't even care, though, they made their bed, let them sleep in it...
