Future Individual Commissions in My Area

[nolaagent]

I use 4 individual carriers:

The Blues - non-profit, they say they are going to keep commissions the same 20%/5% (but they haven't put it in writing). They say they are already operating on a 83% MLR. Still offer child-only apps and will pay commish on it. About 60% of my book is with them with about 80% of it in the 5% renewal stage

HumanaOne - publicly traded, they sent a letter saying they will change commission later this year, stopped offering child-only, 20% of my book is with them, mostly 1st year biz

UnitedHealthOne - publicly traded, they sent a letter saying they will change commission later this year, stopped offering child-only, 10% of my book is with them, mostly 1st year biz

CoventryOne - publicly traded, not a word about changing commission, stopped offering child-only, 10% of my book is with them, mostly 1st year biz

Now if these publicly traded national carriers cut commissions to 8 to 12% commish I think I should:

1) roll the national carrier biz to Blue to get 20%
2) roll my Blue renewal biz to the other carriers to boost my 5% to 8-12%
3) any prospect with no insurance or a current national carrier automatically goes to Blue
4) any prospect with current Blue Cross goes to the highest paying national carrier?

Any thoughts?

 

[CHUMPS FROM OXFORD]

Re: Future Indiv Commissions in My Area

With all respect...I'm glad you're not my broker.

 

[nolaagent]

Re: Future Indiv Commissions in My Area

With all respect...I'm glad you're not my broker.

Hey normally I don't roll business, but this is survival. I have bills to pay and can't afford a big paycut. I'm just hoping my local Blues really delivers on their promise.

 

[CHUMPS FROM OXFORD]

Re: Future Indiv Commissions in My Area

I understand about survival. But make up the business in other ways. Check your PM.

 

[nolaagent]

Re: Future Indiv Commissions in My Area

I understand about survival. But make up the business in other ways. Check your PM.

I am working on diversifying and increasing volume, but if you were in my scenario, you wouldn't be influenced by commission rates?

 

[YouGotMyMoney]

Re: Future Indiv Commissions in My Area

I am working on diversifying and increasing volume, but if you were in my scenario, you wouldn't be influenced by commission rates?

We all can empathize with what you're trying to do here, but just ask yourself if you would want you're clients to know why you were flipping them.

 

[nolaagent]

Re: Future Indiv Commissions in My Area

We all can empathize with what you're trying to do here, but just ask yourself if you would want you're clients to know why you were flipping them.

Well if I can save them money and put them on a good plan and keep my income intact...it's a win-win!

 

[YouGotMyMoney]

Re: Future Indiv Commissions in My Area

Well if I can save them money and put them on a good plan and keep my income intact...it's a win-win!

Sure, but let's be real here ok?

I'm a closer and have sold products before just so I could make a buck.

So, let's not pretend it's about what's best for the client.

You're original post was about how to maximize you're earnings, not which carrier was the best for you're clients.

And you know that's ok, if you're all about just making the most money without regards to you're clients welfare, there are plenty of agents who feel the same way.

I'm not judging you, just so you know, If I had the choice of selling Carrier A for 20% and Carrier B for 10%....you can bet your ass I will be trying to find a way most of my book is with Carrier A. Though that's not to say if Carrier B was a significantly better fit for the client, I would screw them so I could make 50% more.....cause eventually "Murphy's Law" would kick in and they would smell something foul.

Something you may want to consider:

With GoldenRule's 30 day wait on effective dates, how are you gonna flip anyone with current coverage to them? Sure, you will get a few people who can handle 2 ins payments @ once, but on a large scale....I don't think so.

Case in point, I have a client whose Humana policy renewed an they can't afford the new rate....so they went with UHC, but had to drop insurance for a month cause they cant afford 2 payments at once.

 

[CHUMPS FROM OXFORD]

Re: Future Indiv Commissions in My Area

"but had to drop insurance for a month"

Why not just write a ST plan for a month?

 

[YouGotMyMoney]

Re: Future Indiv Commissions in My Area

"but had to drop insurance for a month"

Why not just write a ST plan for a month?

That's what I recommended.

They didn't want to, for their sake I hope it doesn't bite them in the ass. But if they have anything they are diagnosed with during the 30 day window, they just have to keep being uninsured for 5 more months and they can receive the wonderful bounty of Obamacare.