Blue Cross of Illinois - 2016 News of Interest

[AllenChicago]

January 15, 2016

I hate what the Chicago Tribune website does to my browser, but this is a good article that explains what's going on right now with Blue Cross of Illinois, and also alludes to problems that Harken Health is experiencing, its first year in business.

Story: Dumped Blue Cross members find new frustration: Customer service - Chicago Tribune

 

[AllenChicago]

Email sent to IL-OK-TX (maybe all HCSC companies) agents today.

News Alert – Tuesday, Feb. 23, 2016

Retail Market
BCBSIL to Eliminate Producer Commissions for NEW Under 65 Medical Policies with Effective Dates On or After April 1st

At Blue Cross and Blue Shield of Illinois (BCBSIL), we are committed to expanding access to quality health care to as many people as possible in Illinois through the retail market, and have been "all-in" since the inception of the Affordable Care Act (ACA). However, as the individual market evolves, we, in turn, need to make changes to the way we operate in order to continue offering sustainable health plan options to our members.

BCBSIL will eliminate producer commissions for new sales of individual ACA plans effective April 1, 2016.

This commission change does not affect in force under 65 individual major medical renewal policies, retail ancillary products, or new or renewal sales in the group market or in the Medicare market.

We value our producer relationships and they continue to be vital to our business. As always, we assess and evaluate our commission structure on an ongoing basis and will make adjustments as appropriate. We plan to re-evaluate producer commissions for the sale of new individual under 65 major medical policies with Jan. 1, 2017, effective dates. As we approach the next open enrollment period, we will update our producers on commission rates.

 

[SamIam]

We new this is coming. Wonder what they will come out with commission next enrollment period so I can determine if it's worth my time to get certified again. If they lower it I'm done wasting my time.

 

[AllenChicago]

We new this is coming. Wonder what they will come out with commission next enrollment period so I can determine if it's worth my time to get certified again. If they lower it I'm done wasting my time.

If Blue Cross eliminates commissions on 2017 plans, the policies we wrote in 2014, 2015, 2016 might be dropped to 0% commission when they renew for 2017.

Another concern is that 2014, 2015 and 2016 policies that undergo any SEP changes this year will instantly become 0% commissionable as well.

 

[cjmac]

My understanding from our GA w/BCBS is that it only applies to the special enrollment period for 2016. (They will also be accepting AOR changes here soon which you will receive commission for in 2016.) New clients that enroll with BCBS during open enrollment for the 2017 plan year will continue to receive commissions for 2017. This does not really apply to me because we have no BCBS network in our area (Blue Choice Preferred-not contracted w/any hospitals or doctors in the Effingham/Charleston/Mattoon area).

I will try to move most of our block of business elsewhere in the next year. (already moved about 50 clients from BCBS to Health Alliance this past Open Enrollment.)

I have grandfathered plans that are still with BCBS because they still use the older PPO network. (I am sure that these we be cancelled at some point in the next year or two -- at that point we would move them to another carrier)

 

[ARus]

We new this is coming. Wonder what they will come out with commission next enrollment period so I can determine if it's worth my time to get certified again. If they lower it I'm done wasting my time.

People still coming for help on existing policies purchased through the Marketplace. They try to manage themselves and they can't. Same thing is with enrollment - they can't understand how all laws are interacting and need help. I probably will start charging high consultancy fee if no commission is offered. Until people are coming to me for help, it means they need me. Of course it is not our business to sale products for a fee, but what can we do?

 

[Pancur]

People still coming for help on existing policies purchased through the Marketplace. They try to manage themselves and they can't. Same thing is with enrollment - they can't understand how all laws are interacting and need help. I probably will start charging high consultancy fee if no commission is offered. Until people are coming to me for help, it means they need me. Of course it is not our business to sale products for a fee, but what can we do?

What consultation fee you think is OK, $50, $100, $150? Is it actually legal to charge the fee?

 

[ARus]

If no any commissions from any major insurer we place our business with: it should be 150. It also should be up to Marketplace enrollment and renewal or only insurance. First group should be charged more.
50 should be a minimum for more than 30 min. consultation for anything.

My point is that our nature of income will change, and this isn't normal.

 

[steven2244]

They priced those plans with commissions included - SEP or not!

Its called theft, pure & simple

 

[AllenChicago]

They priced those plans with commissions included - SEP or not!

Its called theft, pure & simple

It's a tragedy that corporations now value the "things" they own more than the people who enabled them to own those things. Insurance companies in particular, will fleece policyholders, agents and employees, before shedding a single piece rented real estate.