This is the first one I've seen. Blue Cross Blue Shield of AZ just announced an increase in commission in the small group segment, for micro groups of 2-3 employees.
A LITTLE HISTORY...
Up until Obamacare, Blue Cross paid 5.5% flat (new and renewal) for small group business in AZ. Then they went to $6 PEPM (per employee per month) for micro groups of 2-3 employees, and larger groups of 4-50 lives was paid at $23 to $31 PEPM, depending on the size of your book of business. Renewal commission was a little less than new business
JUST ANNOUNCED
Now, micro groups will go from $6 PEPM to $15 new and renewal. Groups of 4-50 lives will remain as is. Groups of 51-99 saw an increase in commissions too, albeit commissions can be negotiated.
I haven't heard if BCBSAZ has hit the 80% MLR or not, but I know that Health Net did, and so did Aetna except their group HMO.
Also, we've been seeing some Quarterly sales bonuses announced by most of the carriers. What I've heard on the street is that agents who haven't left the business are not spending time spurring new sales, which is concerning to the carriers.
It's always good to see a carrier increase commission after cuts like these. In AZ, Blue Cross is a market leader and most carriers need to follow suit to keep sales.
A LITTLE HISTORY...
Up until Obamacare, Blue Cross paid 5.5% flat (new and renewal) for small group business in AZ. Then they went to $6 PEPM (per employee per month) for micro groups of 2-3 employees, and larger groups of 4-50 lives was paid at $23 to $31 PEPM, depending on the size of your book of business. Renewal commission was a little less than new business
JUST ANNOUNCED
Now, micro groups will go from $6 PEPM to $15 new and renewal. Groups of 4-50 lives will remain as is. Groups of 51-99 saw an increase in commissions too, albeit commissions can be negotiated.
I haven't heard if BCBSAZ has hit the 80% MLR or not, but I know that Health Net did, and so did Aetna except their group HMO.
Also, we've been seeing some Quarterly sales bonuses announced by most of the carriers. What I've heard on the street is that agents who haven't left the business are not spending time spurring new sales, which is concerning to the carriers.
It's always good to see a carrier increase commission after cuts like these. In AZ, Blue Cross is a market leader and most carriers need to follow suit to keep sales.
