Blue Cross Georgia Commission January Statement

[AndreaSti]

Well, since I can't go anywhere since I am snowed in, thought I would go over my first Jan commission statement. For those who are licensed elsewhere, BCBSGa is going from 10/10 to 10/7, retro to the existing block of business. From my review, I see they are starting with the December premiums paid (paid in January, when the changes start). That in itself sucks, but it also looks like they are paying out 7% on everyone with a policy over 1 year old, no matter which quarter their renewal is. Correct me if I am wrong, but I don't think anyone else is doing this (they are hitting us on the client's annual renewal, not all at once). Does this sound correct, or am I hallucinating?

 

[somarco]

That is what I found on my statement too. Aetna was going to cut everyone retroactive but when the excrement hit the fan and they heard agents would move good business on a wholesale basis leaving them with the bum policyholders they had a change of heart.

Perhaps Blue will see the light too.

This is like a few years back when they decided they had too many brokers and wanted to eliminate 70% of them. They announced that anyone who did not write 10 apps a year would be terminated.

Shortly after that new business dropped off and existing business that could be moved went to other carriers.

They never did carry through that threat and never terminated anyone that I know of for non-production.

Short memories at Blue.

What a bunch of idiots. Obviously they didn't all leave and go to Coventry. A few hung around to make stupid moves like this.

 

[AndreaSti]

This sux. Don't see any of my client's premiums going down anytime soon either.

BCBS had plenty of idiots so they were more than able to share with Coventry unfortunately.

 

[sman]

Coventry isn't waiting until renewal if the policy is at least 12 months old either. I think that's pretty much standard across the board. If the insured has had the coverage for at least 12 months, I think virtually every carrier is paying the new renewal commission.

I am making an assumption that you thought they were waiting until the client came up for their next rate change before adjusting the renewal commission (even if they have been covered for more than 12 months).

I did have a pleasant surprise on my BCBS statement. In late October I did an AOR change on a lady who was paying a little over $1,000 per month. As you know, with the AOR the commission is reduced to 5%. Well, we made a change to her plan with a 12/01/2010 effective date. The new premium is somewhere between $800-$900 (I don't recall the exact amount). The commission showed up as 10% as if it were a new plan and I was the original AOR.

Well, since I can't go anywhere since I am snowed in, thought I would go over my first Jan commission statement. For those who are licensed elsewhere, BCBSGa is going from 10/10 to 10/7, retro to the existing block of business. From my review, I see they are starting with the December premiums paid (paid in January, when the changes start). That in itself sucks, but it also looks like they are paying out 7% on everyone with a policy over 1 year old, no matter which quarter their renewal is. Correct me if I am wrong, but I don't think anyone else is doing this (they are hitting us on the client's annual renewal, not all at once). Does this sound correct, or am I hallucinating?

 

[AndreaSti]

Coventry isn't waiting until renewal if the policy is at least 12 months old either. I think that's pretty much standard across the board. If the insured has had the coverage for at least 12 months, I think virtually every carrier is paying the new renewal commission.

I am making an assumption that you thought they were waiting until the client came up for their next rate change before adjusting the renewal commission (even if they have been covered for more than 12 months).

I did have a pleasant surprise on my BCBS statement. In late October I did an AOR change on a lady who was paying a little over $1,000 per month. As you know, with the AOR the commission is reduced to 5%. Well, we made a change to her plan with a 12/01/2010 effective date. The new premium is somewhere between $800-$900 (I don't recall the exact amount). The commission showed up as 10% as if it were a new plan and I was the original AOR.

You assumed correctly about me. I re-read the amendment from Coventry and I believe you are correct. Not sure why I am having trouble understanding this - I am normally not so dense.

I hope BCBS doesn't change their mind and switch you back to 5% on that policy, although I don't know why they would since they probably started her pre-ex over, thus a new policy. Plus they should be glad you didn't move her to a different carrier if possible.

 

[sman]

Yeah I hope they don't go back and change it either.

You did bring up something that I think we should ask BCBS about. The commissions they just paid were for premiums paid in December. In my opinion those should receive the 10% commission rate. I wonder if a lot of us start hitting them up with the question if they will correct it? Ha, I forgot, it's BCBS we are talking about. They think they are the gold standard in everything. Oh well, I might still send them an email questioning it.

You assumed correctly about me. I re-read the amendment from Coventry and I believe you are correct. Not sure why I am having trouble understanding this - I am normally not so dense.

I hope BCBS doesn't change their mind and switch you back to 5% on that policy, although I don't know why they would since they probably started her pre-ex over, thus a new policy. Plus they should be glad you didn't move her to a different carrier if possible.

 

[GA in GA]

I knew the carriers would get to the reduced commission asap. In other words as soon as the policy 12 month guarantee period was up, but there is no way they should be applying these to December commissions. It's our January commission statement, but they are still December commissions. Bu** Sh**

 

[AndreaSti]

Wimberley, Stacey [mailto:[email protected]]


That's who we asked. She said it was for commissions paid in January. Didn't matter what date the premiums that the commissions were paid on were for. Just that they were paid in January

 

[somarco]

All the carriers are making this up as the go along, just like HHS Shebullshits.

A few months down the road when they realize their new business has fallen off a cliff and "good" policyholders are leaving while "bad" ones are sticking on the books, they will sing a different tune.

 

[taterpeeler]

All the carriers are making this up as the go along, just like HHS Shebullshits.

A few months down the road when they realize their new business has fallen off a cliff and "good" policyholders are leaving while "bad" ones are sticking on the books, they will sing a different tune.

yep... first they will do big bonuses then when that dont work they will raise comp