Coventry of Ga- Broker Pass Through Option

[sman]

From: Barnett, Stacy [mailto:[email protected]]
Sent: Friday, August 15, 2014 3:18 PM
To: Barnett, Stacy
Subject: Broker Pass-Through *please respond by 08/25/14*
Importance: High


As you know, we have previously addressed putting the broker compensation outside the medical premium by introducing the broker pass-through. This has been a popular option.

With that in mind, I would like to tell you about a particularly exciting change that will take place beginning with October small group renewals:
Effective 10/01/2014, all Coventry KWYH renewals will be generated with Broker Pass-Through, not standard commissions. If a group decides to make a plan change to a current ACA plan option, compensation will revert back to the current commission schedule.
The deadline to advise me of the standard percentage compensation that you would like applied to all of your KYWH renewals is August 25, 2014. If I do not hear from you by this date, the default percentage will be 6%.
The group specific broker pass-through paperwork will be sent along via a separate email. Please be looking for it.
If you have questions, do not hesitate to reach out regarding this option, and other lines of coverage to increase your overall compensation with Coventry. I hope that you are as excited as I am to offer you the ability to determine your own compensation!



This is the email I received earlier today re: the broker pass through... I called our Aetna / Coventry group representative and he stated that this was the direction that Aetna was heading in both group ( now) and indy( later next year). When I asked him about the wording in the email that stated that this " broker pass through" would only be applicable to Non-ACA plans he responded with the company wide employee webinar with Bertolini that stated that the current distribution model with agents cost Aetna 2 billion a year and they can not sustain this with the new margins brought on by Obamacrap and MLR.

I'm not doubting what you received or what you were told, just stating the conflicting information regarding individual plans as it pertains to pre-ACA plans since those plans will not be renewed (this is specifically related to Coventry, I can't speak for Aetna pre-ACA plans).