Don't even think about rolling a book of Medicare business!

[Medicare Momma]

Agents are torn between doing what is right by their clients and keeping their agent contracts in good standing. Every year we have agents who move substantial, if not all, of their clients from one carrier to another. Naturally this angers the losing company and they are within their legal rights to TERMINATE the agent's contract. Agents call us freaked out that they were getting their clients a better plan and they should not be terminated for doing the right thing! But carriers can terminate an agent with 30 days notice without reason - and they do! Tread lightly, because not only do they terminate agents for this, they bar them from ever re-contracting.

 

[vic120]

Is this really an issue?

I have read here on the forum that many look for lower rates every a couple of years and I have heard it from other large brokers

I myself have just come to a place where I started to notice a drop of from not doing this and started helping clients change that was 3 to 6 years on the books and did well with this throughout the year

Do I really need to be concerned now?

 

[GoPokes]

Can you say with any certainty at what point a company determines the agent is rolling the business? Like, a percentage of business is moved ?

 

[JackInsuranceMan]

"Can you say with any certainty at what point a company determines the agent is rolling the business? Like, a percentage of business is moved ?"

I would like to know the answer to this question too!

 

[somarco]

I suspect the answer is . . . it depends . . .

Substantial or significant percentage are subjective terms not easily defined.

Wholesale replacement, especially if captive going to independent will certainly get your breast in a ringer.

I have never had to move a number of my clients at once so can't say other than no one has sent me a nasty letter over transplanting clients. I have done a number of internal conversions with a carrier that pays new FYC on IC business. Win win for carrier, client and me.

Quite a few of my clients aren't healthy enough to move even when they want to.

 

[Newby]

Agents are torn between doing what is right by their clients and keeping their agent contracts in good standing. Every year we have agents who move substantial, if not all, of their clients from one carrier to another. Naturally this angers the losing company and they are within their legal rights to TERMINATE the agent's contract. Agents call us freaked out that they were getting their clients a better plan and they should not be terminated for doing the right thing! But carriers can terminate an agent with 30 days notice without reason - and they do! Tread lightly, because not only do they terminate agents for this, they bar them from ever re-contracting.

1. Here is what I have always done and never had a problem. Put them on a Plan G or N (I've never used F because the increases have always been higher on those and they never made sense anyway.

2. Tell them to call me whenever they get a rate increase more than a few dollars. Many call every year. I look at how competitive they still are compared to what else is available. I encourage them to stay put unless they are like $40+ higher than other brands that I consider stable. I don't consider the lowest plans with no history. If they are more than $40 monthly higher than the same lettered plan with a company that I consider a solid company then I ask about their health. Many can't change anyway due to health. The ones who are healthy I tell them the rate and company that I would recommend if they were coming to me new today. Some will want to make an appointment to change. Others will want to stay with what they are on until they hit a higher level of premium savings.

3. The main thing is being available to have these conversations with them when they get concerned. Many just want to know their options and then feel good about staying where they are at. Others are ready to jump and if you don't help them someone else will.

This has maintained a very stable and loyal customer base AND good relationships with all my carriers over many years. One other factor is to not sell too many companies. Sell fewer carriers and constantly be adding business keeps everyone happy.

 

[Todd King]

Is this really an issue?

I have read here on the forum that many look for lower rates every a couple of years and I have heard it from other large brokers

I myself have just come to a place where I started to notice a drop of from not doing this and started helping clients change that was 3 to 6 years on the books and did well with this throughout the year

Do I really need to be concerned now?

No, it really has never been much of an issue. I think someone just wanted to make a post about something.

Besides that, if I had to move a substantial number of clients and I got terminated, I don't think I would be worrying about it too much. You're replacing them for a reason.

 

[vic120]

No, it really has never been much of an issue. I think someone just wanted to make a post about something.

Besides that, if I had to move a substantial number of clients and I got terminated, I don't think I would be worrying about it too much. You're replacing them for a reason.

I think the most I did was 25% with one carrier because they are not competitive anymore and haven't been for a couple of years

Wait forgot about equitable did like 40% with them but I didn't have too much, to begin with

Everyone else was under 10 or 15%

 

[russelltw]

I would guess this happens more in the MA market; where a carrier has a significant change in their benefits/premiums and everyone moves.

What happens if all members move and it's not the result of the agent? Does the agent get canned then too?

 

[FLM2]

No, it really has never been much of an issue. I think someone just wanted to make a post about something.

Besides that, if I had to move a substantial number of clients and I got terminated, I don't think I would be worrying about it too much. You're replacing them for a reason.

I would never spend 2 minutes worrying about this-I enroll my clients in the plan that makes the most sense for them and let the chips fall where they may.

I also have a single FMO for my primary Medicare companies so would expect them to provide protection for me against a termination. Even without that, though, I would not be concerned and agree with Todd about the reasoning behind the original post.