Commission % on Covered CA ?

smitty619vt

New Member
11
As a licensed agent in CA selling on the exchange. From what I understand so far..... The commissions will be the same for in or out of the exchange in 2014.

My question is: Will we get a commissions % from the premium before the subsidy amount or after ? So if somebody's premium is lets say $600 a month and they get a $200 subsidy making there monthly premium $400. What is the commission based off $600 or $400 ?

Thanks
 
There is no doubt that if commissions are on a percentage, it will be on the gross, not the net after subsidy.

The insurance companies get paid the gross premium as well.

Rick
 
There is no doubt that if commissions are on a percentage, it will be on the gross, not the net after subsidy.

The insurance companies get paid the gross premium as well.

Rick

What if, (gasp!) the government doesn't send their percentage to the insurance company on time? Insurance company computers are programmed to pay agents based on premiums actually received.

Maybe what's being discussed in the Individual Health Insurance sub-forum is more doable?.. pay us a fixed dollar amount each month per insured member.
-ac
 
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I'll repeat my post here from the other thread:

I don't know of anything in the law that restricts commission to the client portion of the premium. Many will be paying $50/mo for their insurance. Unless HHS doesn't want to give these people good service from professional agents like us, I'd expect to be paid on the whole premium since we're paid by the carriers, and the MLR is based upon the whole enchilada (not burrito like the title of the thread)
 
According to the Agent Agreement with Covered California, each you will be paid on the gross premium amount.

After a meeting with L.A. Care, they indicated that they are paying commissions as they come in. If the client is paying $100 per month, you will get 6.5% of that $100. Once the federal subsidy comes in, you will be paid the remainder of the commission.
 
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