Getting Screwed by AHCP

[freighttrain]

I'd stay far away from HCO as well. I've been fighting with them for 3 months to get Humana and Aetna commissions they owe me. It has been very frustrating because you can never get a direct answer as to when or if I will ever get paid. I have lost all trust in HCO. It is impossible to speak to Scott or Jen directly, they have to many gatekeepers protecting them from pissed off brokers. Go direct and save yourself a headache.

 

[ijerome]

Re: Getting (not) Screwed by AHCP or HCO

NOT screwed by HCO or AHCP. First I have ever read anything bad about HCO. HCO is very rapid on replies and getting things done. Perhaps there is a failure to communicate; and it takes 2 to communicate. Their staff gets it done.

 

[ScottHCO]

Thanks iJerome.

Freighttrain,

We don't pay commissions for Aetna. They either come directly from the carrier if you are set up for as earned commissions or from AHCP if you want advances.

In fact, we don’t typically pay commissions to agents. We set up our agents on "DIRECT PAY" to receive their commission checks directly from the carriers...and we have over 75 of them. There are a few exceptions though. Humana is one of them.

With Humana, if you want advanced commissions instead of as-earned, then Humana dictates to HCO that we have to do the accounting and pay the commissions to the agents.

Once we get the master commission check from Humana, we process and pay commissions within 24-48 hours. In fact, there have been three times this year where Humana didn’t post commissions by the 1st of the month and therefore did not pay HCO any money that month to pay our agents. HCO used its lines of credit to pay EVERY single agent due commissions each time that happened…and I’m talking about 10’s of thousands of dollars each time. All agents were paid on time and paid every penny they earned.

Humana also has licensing issues from time to time where they hold an agent’s commissions, but we also manage to fix these issues and often pay the agent prior to receiving the actual commission check from Humana.

I can assure you that if you email me your specific concerns, you'll have a reply within hours.

We're here to help. Just ask... :o)

 

[souldeux]

Thanks iJerome.

Freighttrain,

We don't pay commissions for Aetna. They either come directly from the carrier if you are set up for as earned commissions or from AHCP if you want advances.

In fact, we don’t typically pay commissions to agents. We set up our agents on "DIRECT PAY" to receive their commission checks directly from the carriers...and we have over 75 of them. There are a few exceptions though. Humana is one of them.

With Humana, if you want advanced commissions instead of as-earned, then Humana dictates to HCO that we have to do the accounting and pay the commissions to the agents.

Once we get the master commission check from Humana, we process and pay commissions within 24-48 hours. In fact, there have been three times this year where Humana didn’t post commissions by the 1st of the month and therefore did not pay HCO any money that month to pay our agents. HCO used its lines of credit to pay EVERY single agent due commissions each time that happened…and I’m talking about 10’s of thousands of dollars each time. All agents were paid on time and paid every penny they earned.

Humana also has licensing issues from time to time where they hold an agent’s commissions, but we also manage to fix these issues and often pay the agent prior to receiving the actual commission check from Humana.

I can assure you that if you email me your specific concerns, you'll have a reply within hours.

We're here to help. Just ask... :o)

Scott, while I commend you guys on paying us off of your lines of credit and I certainly appreciate the liability you guys take by advancing when the carrier would prefer you don't, the bolded portion there just ain't so. HCO has been late with my Humana checks three times so far - you guys have paid, and you've paid what you promised, but the Humana comps aren't always on time. One of those times, my check was a week late. Once it was thirty days, and once it was either 45 or 60 (can't recall).

I like you guys just fine, but nobody's perfect - and the Humana payment schedule is a reflection of that.

 

[ScottHCO]

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Nick,

With all due respect, we don't pay commissions late. It's not possible. When we get the check from Humana, we cut your check and every other agent's check within 24-48 hours. When WE get paid....YOU get paid. It's just that simple. :o)

To pay you late would mean we somehow held onto your check... Again, not possible because we clear out the Humana commission account every pay cycle and NEVER hold commissions for any reason. Make sense?

We NEVER hold checks. Our books are open if you would like to audit them to see that you have never been paid late by HCO...

Being paid late by Humana is another story...

The Humana commissions are unlike any other. Three things have to happen for Humana to cut commissions to HCO.

1. Policy must be Issued
2. Policy must be In Force
3. Client's premium must be posted by Humana

Most carriers that advance will cut the check within a week after the effective date, regardless of whether the policy is in force or not.

The additional criteria with Humana on the "In Force Status" and "Posted Premium" is what makes them a "slow pay" carrier. We tell agents this during training.

For example, one of the cases listed above was issued 04-01-2009 and we didnt receive the commissions from Humana until 05-15-2009... This is quite common, but it's clearly not an HCO issue...It's a Humana issue. Make sense?

Constantly agents don't receive the amount they are expecting from Humana because the premium doesn't get posted before the commission cut-off date. When that happens, the commissions come on the next check.

Call me for details, but please don't add fuel to this fire as it's bogus.
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[souldeux]

Scott, I had a big long response typed out and then I got your email. All I'll say is this: I didn't mean to imply that it was an HCO problem. You and I have had conversations in the past about this, and I know it starts at the top, impacts HCO, and trickles down to agents. My choice of wording was poor - you've never paid me late, but to circumstances beyond our control I have received checks later than I originally expected them.

To clarify for other folks reading the discussion: hell, sorry, I communicate ineffectively. It's not an HCO problem. My conversations with Scott, Darrene, and Eric have very much convinced me of that. If you're putting your health contracts through HCO, you're doing the right thing.

I'm an HCO fan through and through, don't worry.

 

[ScottHCO]

Nick,

You are 100% correct.

We recently met with Humana and discussed this very issue. Other carriers pay much faster and we made that point in an attempt to help our agents...and Humana. We know that many of our agents would write more with Humana if they paid faster, upon issue...like everyone else. They were very interested in our feedback and completely understood where we were coming from. Very promising. I'll keep you posted on any potential changes with Humana on this issue.

Here's the bottom line... When a carrier makes a mistake, especially with commissions, or just pays slow, the agents suffer. That's why we step up to the plate and come out of pocket to make it right whenever possible. It stings, but we know it's the right thing to do.

Thanks for your support Nick! I truly appreciate it!

 

[stormtracker]

I have to admit, I am impressed. Would you recommend this agency, Souldeaux?

 

[souldeux]

I have to admit, I am impressed. Would you recommend this agency, Souldeaux?

Health Choice One? Yes, I would. I currently write Assurant (advanced), Humana (advanced), Golden Rule (advanced through AHCP for now, but will soon go as-earned straight from HCO), and Aetna (as-earned) all with Health Choice One. I'm fairly certain Eric (Hartmeister, at HCO) is ready to kill me, but especially over the past few days his services up there have stood out as particularly valuable.

They're good people. I think the best part of HCO is that when you call in, you feel like you're talking to a group of real people, not a bunch of wage-slave customer service reps. It's very personable.

 

[stormtracker]

Health Choice One? Yes, I would. I currently write Assurant (advanced), Humana (advanced), Golden Rule (advanced through AHCP for now, but will soon go as-earned straight from HCO), and Aetna (as-earned) all with Health Choice One. I'm fairly certain Eric (Hartmeister, at HCO) is ready to kill me, but especially over the past few days his services up there have stood out as particularly valuable.

They're good people. I think the best part of HCO is that when you call in, you feel like you're talking to a group of real people, not a bunch of wage-slave customer service reps. It's very personable.

I am currently appointed to a mish-mash of carriers and need to unify things. Thanks!