HCR-MLR Commissions Adjustment Thread.

[AllenChicago]

Now that we've passed the first major HCR implementation date of 9/23/2010 and most of the health companies have complied, lets turn our attention to the next event to affect us, which is COMMISSIONS. Several companies have already stated their intent to reduce commissions, but today brought a pleasant surprise from one of my favorites... IHC Health Solutions. Here's an excerpt from their letter:


Great news: No IHC commission changes in 2010 due to PPACA!
We are not planning to reduce commissions, either first-year or renewal, on any of our fully insured products as a result of the Patent Protection and Affordable Care Act. This includes commissions on major medical for small groups, individuals and families, short-term medical and dental. Those who sell and service our products significantly drive IHC's success, so we are committed to providing a compensation package that rewards you as we grow our business together.
.
For cases written with an effective date of January 1, 2011, or earlier:
•We will not change your first-year commission. You will continue to receive your current first-year commission percentage until the case reaches annual renewal.
•You will continue to receive renewal commission on inforce policies as outlined in your commission addendum and agent appointment agreement¹.
.
In 2011: We will not implement any commission changes without providing a 60-day notification².
.
As always, we continue to support and recognize your success every step of the way with:
(SNIP)


Instead of having many threads to search through for commission revisions from the various carriers, can we keep the announcements in this thread as the companies publish them? Thanks in advance my colleagues.
-Allen

 

[CHUMPS FROM OXFORD]

Nice. Unfortunately, us folks in Ohio received this disturbing email today from a major carrier. In part, it reads:

"...although we deeply regret our actions, we feel that ultimately we must serve our customers. Therefore, as of 1-1-11, we will pay a commission of 2.5% for all individual business written. This amount will be reduced by .5% each year....Also, regrettably, we will only pay commissions to brokers that have been licensed with us for at least five years. All others may turn in applications for a "finders fee" of $15. In 2014, we will no longer pay commissions on individual business, although we will still accept applications.


While we had hoped we did not have to take these actions, we still feel the broker plays an important role in our business. Therefore, we are pleased to announce that this email is bogus and Chumps is just bored. Damn him. Why did he do it? Nobody knows. Is there a God? Can the Reds advance? I just don't know.

 

[669comche]

HA HA, nice try.

You almost ruined my morning!

 

[ABC]

Do you like IHC?
I have quoted them on groups cases but they have been way out of the ball game.
I really wanted to do business with them because I like their business model.

 

[AllenChicago]

Do you like IHC?
I have quoted them on groups cases but they have been way out of the ball game.
I really wanted to do business with them because I like their business model.

I really like IHC and so do my clients. As you stated, their Group Plans are priced way too high. But over the last 4 years, I've worked up to the point where 80% of my individual sales are through the IHC member company, Standard Security Life.

The company is large enough to have a superb support and customer service area, but small enough for you to call and talk directly to a case underwriter, and to "work things out" with her/him during the underwriting process. Some nice trips too.

IHC is FAR FAR more satisfying to work with than any other company during the underwriting process, and with taking care of ongoing client needs as well.

The only negative is that they don't pay commission on rate-ups for smoking, or anything else.
-A.C.