Clients Being Told They'll Get Referral Fees for Enrolling Friends in O-care

I have no idea anymore. If someone refers someone to me and we have an arrangement the agency pays referral fee only have having a copy of their state insurance license and W-9.

I think that might be ok if they didn''t say for each enrolled. If they gave $50 out for each referral to everyone regardless of whether enrolled or not, might be legal.

This is one of many reason's the compliance will look like MAPD very soon.
 
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So, what's to stop a broker from registering and giving themselves a $50 bonus for every app they write? (Except for NY people like me, because they won't pay for any NY referrals)

I skimmed the T&C, nothing disallows it. As far as I can tell, it just pushes them to hc.gov.

Company is not an agent/broker, implying they aren't BOR'ing policies.

Fee is given for *submission*, not enrollment. They need a w-9 on file. They reclaim all fees if you don't withdraw it by 3/31/16.
 
So, what's to stop a broker from registering and giving themselves a $50 bonus for every app they write? (Except for NY people like me, because they won't pay for any NY referrals)

I skimmed the T&C, nothing disallows it. As far as I can tell, it just pushes them to hc.gov.

Company is not an agent/broker, implying they aren't BOR'ing policies.

Fee is given for *submission*, not enrollment. They need a w-9 on file. They reclaim all fees if you don't withdraw it by 3/31/16.

Still totally weird. . . .do they really think the average person is going to file a W-9 with them? . . . .
 
It looks like they are passing the enrollments to brokers and carriers directly, and likely getting compensated that way. From their CEO's statement linked here: A note to those with concerns about HealthNetwork or their partners | ACASignups.net

How HealthNetwork Works:
We work with reputable, well established companies within the health insurance industry. Companies that will comply with our standards and requirements which are leading the industry with respect to the consumer experience. We have some very specific ways in which we monitor quality service and compliance. We do not work with boiler room brokers and agents and we do not work in any capacity with any "lead gen" companies. We do not collect consumer information and resell it. Within HealthNetwork we give consumers the ability to research the options that they have for both on or off exchange plans, and then we provide them with a way to enroll, online, over the phone, or if they choose to, they can even meet with an agent locally. In the future we will give consumers the option to view within HealthNetwork.com a list of local agents within their area. We have a small number of brokers and carriers that we work with directly to fulfill enrollments. We monitor all of these companies very very closely.

So though they claim not to be a lead-gen company, they're basically a lead-gen company.
 
It looks like they are passing the enrollments to brokers and carriers directly, and likely getting compensated that way. From their CEO's statement linked here: A note to those with concerns about HealthNetwork or their partners | ACASignups.net



So though they claim not to be a lead-gen company, they're basically a lead-gen company.

Interesting. If they receive commissions and pay the fee, it's a violation of rebating laws. If they receive the lead, pay a referral fee, and then charge a lead fee, it's legal.

NY treats it a bit differently, hence the reason they don't support it in NY only. It's not due to SBE status as other SBE's are included.

Things are starting to make sense.
 
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