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Concrete is the only one I have found.
Expect a 30-50% Reduction of Commissions - from BCBS of SC
- Thread starter chp
- Start date
Concrete is the only one I have found.
- 323
Because the longer the commission rate is 20% (or whatever) in your head, the more you will sell. Our local blue only paid 9% last year. The good news is they have committed, at least at this point, to 9% next year as well.
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Who do you think buys most of the concrete?
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- 8,448
An excerpt from the August 18, 2010 BCBS-IL Producer Newsletter:
"Individual/Under 65 Markets Changes
The upcoming changes to the commission structure for Individual/Under 65 Markets are not retroactive and will be effective Dec. 31, 2010. Specific details about those commission structure changes will be provided to you at a future date."
Here's a link to the new BCBS-IL Small Group Commission Schedule, effective October 1, 2010: http://contentm.mkt2527.com/lp/4021/10117/2010_il_grp_health-dental_commis_sched_rev.pdf
The new Child-Only policy that has yet to be unveiled will be sold only via the web and will not be linked/credited to any agent.
-Allen
- 1,861
Interesting that they are saying comm changes are non retro.
The fellow who started the thread didn't mention it, but that same VP also said commission reductions would be on new and existing business......
Along those lines, do we know if MLR in 2011 applies to old/grandfathered business, or has that yet to be clarified?
healthagent- I NEVER do advances! My business model is predicated on renewal business. I know, each month, I am getting a check for X amount. It's a beautiful thing!
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669-
A fairly large % of my business are the under 30 crowd. I don;t call them, they call me.
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669-
A fairly large % of my business are the under 30 crowd. I don;t call them, they call me.
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- Thread starter
- #36
"The fellow who started the thread didn't mention it, but that same VP also said commission reductions would be on new and existing business......Along those lines, do we know if MLR in 2011 applies to old/grandfathered business, or has that yet to be clarified?"
I asked the VP this exact question. He said "I should have made it more clear, it will not be on old business. We are not taking away any money you have already earned. This will go into effect in 1 Jan 2011." He also said that we will know sometime in Nov what the exact new commission structure will be, as they have to renew new agent contracts at least 30 days out.
I asked the VP this exact question. He said "I should have made it more clear, it will not be on old business. We are not taking away any money you have already earned. This will go into effect in 1 Jan 2011." He also said that we will know sometime in Nov what the exact new commission structure will be, as they have to renew new agent contracts at least 30 days out.
Is it even clear why all carriers have to cut commissions? Renewals range from 3-5% with a lot of carriers, and the total percentage of new vs. existing business and total comp to agents is not fixed across the board, and where would you get this info. anyway?
- 1,861
Did you ask him after the meeting? B/c the 3 or 4 folks I was sitting with all agreed afterwards that he said existing business, as well. Either way, good that you got clarification.
- Thread starter
- #39
yea, I stuck around for a while after the meeting. That was the main question that I had...will it go against current business, and if so, how far back.
He said, clearly to me, that it will start after the MLR mess, and would go in effect on 1 Jan. He said he has to get the agent agreement (renewing contracts) letters ready, and has to give agents at least 30 days notice to commission changes. That will take place in mid to late Nov. Again, that is what he told me....
He said, clearly to me, that it will start after the MLR mess, and would go in effect on 1 Jan. He said he has to get the agent agreement (renewing contracts) letters ready, and has to give agents at least 30 days notice to commission changes. That will take place in mid to late Nov. Again, that is what he told me....
When all is settled, carriers like Humana pay an average of 11% on booked business over 3 yrs. They admitted in a meeting they might have to get down to 8 or 9% so not much reduction overall but it may be restructured to less on the front end or more like a flat percentage.
In GA, BX pays 10% flat first & renewal while KP pays 11%. They may or may not have any changes or if they do, I don't expect it to be much.
Even though GR pays a high FYC they pay squat on renewal so the only thing that may be affected is FYC.
In looking at amortized commissions, carriers take the total for the first 3 yrs then adjust it for breakage.
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When all is settled, carriers like Humana pay an average of 11% on booked business over 3 yrs. They admitted in a meeting they might have to get down to 8 or 9% so not much reduction overall but it may be restructured to less on the front end or more like a flat percentage.
In GA, BX pays 10% flat first & renewal while KP pays 11%. They may or may not have any changes or if they do, I don't expect it to be much.
Even though GR pays a high FYC they pay squat on renewal so the only thing that may be affected is FYC.
In looking at amortized commissions, carriers take the total for the first 3 yrs then adjust it for breakage.
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