Exchanges and Vesting of Commissions

[insurehound]

I'm betting I just can't find this discussion on the forum so please forgive me if this has already been discussed.

Does anyone know what will happen in 2014 when the Exchanges are fully operational in regards to our current book of business and commission levels? This would include both the Individual and Small Group side? Will they be vested?

Being that I am in California, I believe I read on the Exchange website that this issue still needs to be addressed.

Are we going to get a letter in 10/13 saying that our contracts have been cancelled and no further commissions will be paid? I'm being dramatic I guess.

 

[taterpeeler]

I feel that for the most part the book will be dead and the mission will be to replace them in exchange plans.

 

[russelltw]

I fully expect my monthly renewals on the IFP plans to go away. If comp is decent, I will move my existing book over to the exchange, if comp is not good; I will be pushing my plan B.

 

[insurehound]

I hope you are both wrong. I'm going to have review my carrier contracts. As if that will help (sarcasm).

 

[Dave020]

I have heard different things on this.

Anthem rep said some time ago that they may map the agent over to the exchange if the client goes Anthem to Anthem. I would not want to bank on it but it may happen. Other carriers, doubtful they will map us over.

Blue Shield rep says "retention, retention, retention" starting 1/13 6 months ahead of the exchange marketing. Be prepared and be in constant contact with your book of business so they don't skip you and go directly to the exchange.

I expect an agent will have to be proactive with each client moving the NGF clients to compliant plans and being the active soliciting agent for that purchase.

 

[AllenChicago]

What is the incentive for families that earn over $70,000 to drop their existing policy in favor of a Bronze (or whatever) policy that will cost at least 30% more?

By the way.. will the Tax-Credit Subsidy be calculated on GROSS Income, or ADJUSTED Gross Income? There's a huge difference between the two for most of my health clients.

-ac

 

[insurehound]

Wow. Can you imagine the logistical nightmare of moving a large block of Individual business? And how about Small Group? Especially if most of your renewal business is on a 1/1 to 12/31 renewal cycle. Fun times ahead.

 

[taterpeeler]

Wow. Can you imagine the logistical nightmare of moving a large block of Individual business? And how about Small Group? Especially if most of your renewal business is on a 1/1 to 12/31 renewal cycle. Fun times ahead.

what would be considered a large block for an indy guy?

 

[Dave020]

What is the incentive for families that earn over $70,000 to drop their existing policy in favor of a Bronze (or whatever) policy that will cost at least 30% more?

-ac

If they are non-grandfathered, they won't have a choice. No current NGF IFP plan conforms to the PPACA standard and, according to our carriers, all will be replaced.

BTW, family of 4 I believe gets subsidy up to around $134,000 income, at least in CA.
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Wow. Can you imagine the logistical nightmare of moving a large block of Individual business? And how about Small Group? Especially if most of your renewal business is on a 1/1 to 12/31 renewal cycle. Fun times ahead.

I am concerned that I may have to spend all of 10-12/13 just on retention of existing subscribers. Those on HIPAA, even GF, will likely benefit from a move and I have quite a lot of HIPAA clients, both GF and NGF. Also have to move all of my underwritten NGF clients, and a few small groups. Not sure how to fit in any new business on top of that.

 

[insurehound]

...and replaced with or without us Dave? I think that's what you are saying. So once the plan is mapped over and our name isn't on the app. kiss it goodbye?