Expect a 30-50% Reduction of Commissions - from BCBS of SC

[stuy119]

Can someone enlighten me on why commissions are being reduced when they are not going to be factored into MLR?

 

[AllenChicago]

Stuy, Did you hear or read some late breaking news we're not aware of? Last I read, commissions are going to be considered part of an insurance company's administrative expense. I don't like it, but it makes sense. Would be impossible to justify commissions as part of the medical care side of the MLR equation.

But, if you know something new, spill the beans please!

Insurance companies are like oil companies in one way. Even the THREAT of a hurricane causes gas prices to rise. The THREAT of MLR causes health insurers to reduce pay. And it's not just agent's pay. I hope the MLR is repealed by the new Congress/Senate.

 

[jdoz]

Let me start off by saying I am NOT an agent. (I would say "yet", but seeing as I dont have 6mo liquid as Healthagent said, "yet" might be way too optimistic.) So a good half of what has been discussed here has been completely over my head (MLR?).

However speaking as a health ins. consumer, did I misunderstand the Health reforms or are they not supposed to put an end to yearly premium hikes?

I think many people who might be initially put off by the high premium costs will come around when you explain that that IS their rate for the next (x) number of years.

I have had a bare bones policy with Assurant for the last 4 years for my wife and I, every year like clockwork they hit me with a new premium that is 50% higher than what we are paying, I call, they shoot me a deal where deduct goes up, we pay 50% of a larger amount and the premium still goes up 25%. And we are both healthy non-smokers. I would love to be able to know that what we are paying isnt going to be double 3 years from now.

I know that the higher prices will make it more difficult fo a large percentage of people, but it seems like price stability could be a selling point that offsets some of that.

I'm just praying the Supreme Court puts the kibosh on the whole mess.

 

[somarco]

did I misunderstand the Health reforms or are they not supposed to put an end to yearly premium hikes?

Yes, you misunderstood. Candidates can say anything to get elected, but that does not mean they have to live up to their promise.

I would love to be able to know that what we are paying isnt going to be double 3 years from now.

You and a lot of people. Unfortunately, this scenario only exists in NeverNever Land.

 

[TXINSURANCE]

Commissions are part of MLR. Breaking news flash!!!

Lol.

 

[aheff]

jd- "speaking as a health ins. consumer, did I misunderstand the Health reforms or are they not supposed to put an end to yearly premium hikes?"
Our elected officials lied to us. Period. What started out as a noble idea, HCR (bending the cost curve to truly lower the cost of care), quickly turned into a game of winners and losers. The winners- poor people will now get another entitlement. Losers- everybody else.
(sorry for the rant).

 

[stuy119]

Stuy, Did you hear or read some late breaking news we're not aware of? Last I read, commissions are going to be considered part of an insurance company's administrative expense. I don't like it, but it makes sense. Would be impossible to justify commissions as part of the medical care side of the MLR equation.

But, if you know something new, spill the beans please!

Insurance companies are like oil companies in one way. Even the THREAT of a hurricane causes gas prices to rise. The THREAT of MLR causes health insurers to reduce pay. And it's not just agent's pay. I hope the MLR is repealed by the new Congress/Senate.

No, last I heard they were a "pass-through charge" that wouldn't come into the calculation at all. Was that rescinded or changed?

 

[medx]

I attended a meeting today held by the bigwigs of Blue Cross Blue Shield of SC. Direct from the VP's mouth, to all agents in the meeting:

"There will be very significant changes to the individual health insurance market.

"Expect 30-50 % commission cuts on all individual policies beginning in Jan."

"I apologize for all of this, but again, high volume agents should be ok."

Other comments:

"only the strong will survive"

"I believe the highly efficient high volume agents/agencies will still be able to make a good living".

I had a "private" chat with the VP, he makes it clear that if you are selling only individual plans, you better diversify...

I will be working on my resume for the rest of the week. I do a very good amount of production, but I am not taking a 30-50% pay cut.

This is just the beginning, they will continue to drop the commissions every ear.

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[somarco]

"pass-through charge" that wouldn't come into the calculation

That is being debated, but HHS Sec. Shebullshits has not ruled on that yet. If allowed, SOME of the commission would pass outside the MLR calculation.

 

[stuy119]

That is being debated, but HHS Sec. Shebullshits has not ruled on that yet. If allowed, SOME of the commission would pass outside the MLR calculation.

So what's the difference between paying commission to agents who are well-versed in the products, can represent multiple companies to ensure clients get the best rates possible, and is only paid for the work they do OR paying a Navigator who gets a government salary, with government benefits, who has no stake in whether the customer gets what they should have as a good fit?

I'm sure that has an easy answer that is pretty straight-forward, but won't get answered because the answer would piss a lot of people off.