Exchanges and Vesting of Commissions

[pahealthquotes]

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.

yes I have alot of indy clients and it will be a Nightmare moving them. Small Group is dead on arrival. I'm still in shock about the enrollment periods. This will make it almost impossible to do noting but work 80 hours a week 10/1 thru 12/31 every year. I can deal with it if the comp is right on.

May need to hire temps during the busy season.

 

[insurehound]

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

I think that is subjective. What I would consider "large" may be small compared to a seasoned agent/agency.
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yes I have alot of indy clients and it will be a Nightmare moving them. Small Group is dead on arrival. I'm still in shock about the enrollment periods. This will make it almost impossible to do noting but work 80 hours a week 10/1 thru 12/31 every year. I can deal with it if the comp is right on.

May need to hire temps during the busy season.

Why do you feel Small Group will be DOA? Just curious.

Would you hire temps for administration or would you bring on more agents or both?

 

[Dave020]

...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?

I think that is why my Blue Shield rep is harping on retention. I am not counting on mapping at all and expect that any of my current clients who move to exchange plans (or outside plans) without me will be, at least for the 1st year, lost and gone (forever?).

Starting probably in Jan/Feb, you need to mail each client every other month reminding them you will be available to help them. Even then, some will probably slip through the cracks.

So, you have to spend a lot of time (depending on size of book) working with your existing book for retention purposes a year before it even kicks in, then work with them through the Open Enrollment Period and try and keep as many as you can. It can be done, but the time element is really going to impact ability to find new clients in the retention-heavy activity environment.

 

[insurehound]

I think that is why my Blue Shield rep is harping on retention. I am not counting on mapping at all and expect that any of my current clients who move to exchange plans (or outside plans) without me will be, at least for the 1st year, lost and gone (forever?).

Starting probably in Jan/Feb, you need to mail each client every other month reminding them you will be available to help them. Even then, some will probably slip through the cracks.

So, you have to spend a lot of time (depending on size of book) working with your existing book for retention purposes a year before it even kicks in, then work with them through the Open Enrollment Period and try and keep as many as you can. It can be done, but the time element is really going to impact ability to find new clients in the retention-heavy activity environment.

Good advice Dave. And still, without knowing what the new comp. levels will be, we will be doing much of the work before we know if its worth it.

...and the time element will be rough with open enrollment periods for Individual and Group renewals. Speaking of which Dave, are you talking about Individual or Small Group or both?

We have some clients that we wouldn't mind losing LOL ...and some clients think (especially at first) they may prefer buying it directly. But no doubt that it is possible to keep every client just from a time standpoint.

 

[Dave020]

Good advice Dave. And still, without knowing what the new comp. levels will be, we will be doing much of the work before we know if its worth it.

That has been on my mind the last week or so. A lot of effort for how much comp? Biggest problem right now is we have no clue what our comp level might be. Too low and any retention efforts may well be a waste of time.

I would be far less worried about small group comp levels than IFP. Group will probably be near currrent including SHOP. IFP, lord knows!

...and the time element will be rough with open enrollment periods for Individual and Group renewals. Speaking of which Dave, are you talking about Individual or Small Group or both?

I am primarily IFP so that will be the bulk focus. I have a few groups but expect most if not all of them will dissolve into IFP as they were set up due to insurability issues.

We have some clients that we wouldn't mind losing LOL ...and some clients think (especially at first) they may prefer buying it directly. But no doubt that it is possible to keep every client just from a time standpoint.

That is the ONE plus, you could 'forget' to keep in touch with those clients you might prefer to shop directly at the exchange and not be mapped

 

[insurehound]

Being cynical, I have to wonder if the carriers aren't jumping at the chance to conveniently take advantage of the time contraints agents will face to make our clients their clients!

 

[Ann H]

I've been worried about the "mapping" issue as you called it. And I'm also worried about cancellation of broker contracts in about October of 2013. In some GI states where there were very few carriers left standing, they just issued a 30 day letter to brokers, and commissions were over. Very few carriers offer vested contracts anymore. That's why a good 2nd source of income is vital to being able to survive the drought that will come before we see one nickel from our endeavors to rewrite that entire book.
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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

The premium subsidy income test is based on MAGI (modified adjusted gross income).
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BTW, family of 4 I believe gets subsidy up to around $134,000 income, at least in CA.

Dave, where does that figure come from? According to HHS's Federal Poverty Levels, 400% of FPL for the 48 contiguous states is $92,200 for year 2012.

 

[Dave020]

Can't remember it might be on the CA HBEX site. I recall that the subsidy level was set up by # of family members so a family of 5 has a higher MAGI # than a family of 3 and so on. If I get time I'll try and find the source for that.

 

[insurehound]

I've been worried about the "mapping" issue as you called it. And I'm also worried about cancellation of broker contracts in about October of 2013.

Ann, are we talking about Small Group or Individual or both? So come 10/13, every health insurance broker's income (regardless if they are small group or individual) will go away?

Everyone better have a "Plan B" that is active NOW!

 

[somarco]

family of 4 I believe gets subsidy up to around $134,000 income, at least in CA.

That's about $250k in 2016 when Bernanke created hyperinflation kicks in.

I have quite a lot of HIPAA clients, both GF and NGF

I assumed all HIPAA plans would go away in 2014. They are money losers for carriers. Same for risk pools. No need to keep them around when anyone can buy a plan, especially if they get a subsidy (ha ha).