Health Insurance Question

Mar 7, 2007

  1. Krono
    Offline

    Krono Super Genius

    Posts:
    190
    Likes Received:
    0
    Hello. I am contemplating getting back into the insurance biz after about a 3 year hiatus. Can someone fill me in on percentages insurance companies are paying these days for individual and group plans?

    What about agencies...what are they paying to agents?

    Any help would be greatly appreciated...thanks in advance!

    Krono
     
    Krono, Mar 7, 2007
    #1
  2. Krono
    Offline

    Krono Super Genius

    Posts:
    190
    Likes Received:
    0
    A little help, purty please? :)
     
    Krono, Mar 8, 2007
    #2
  3. somarco
    Offline

    somarco That Medicare Expert Guy

    Posts:
    29,012
    Likes Received:
    2,612
    State:
    Georgia
    Hold your horses. Site was down for a while and just now came back.

    Individual health insurance can vary by state & carrier. Some carriers pay a flat fee of $25 - $50 per app. Some Blue plans pay nothing while others pay 4% to 15% or so first year. They are all over the boards.

    Here in GA Blue pays a flat 10% while KP pays a level 11%.

    Other carriers pay 10% to 25% (with production) first year and 3 - 5% or so on renewal.

    Small group pays 8 - 10% and then grades down based on the size of the case (premium generate) and/or rate ups for health risks.
     
    somarco, Mar 8, 2007
    #3
  4. somarco
    Offline

    somarco That Medicare Expert Guy

    Posts:
    29,012
    Likes Received:
    2,612
    State:
    Georgia
    Just thought of this. Haven't in a long time.

    Years ago, Pilot Life decided to get into the group business. They didn't have (or want) company reps, so they decided to use the existing GA system.

    Bill Gant was the GA for Georgia so they asked him to market the product. They never knew if it would take off or not (and neither did he) but they agreed to pay him an override on all group business written in Georgia.

    Pilot agreed (in writing) to pay him a flat 4%, new & renewal.

    Back then the contracts were lifetime and etched in stone.

    Pilot tried to buy him out several times but he refused.

    Bill retired (and later died) a VERY wealthy man.
     
    somarco, Mar 8, 2007
    #4
  5. Crabcake Johnny
    Offline

    Crabcake Johnny Guru

    Posts:
    14,811
    Likes Received:
    15
    State:
    South Carolina

    What state are you in? It makes a difference.
     
  6. Krono
    Offline

    Krono Super Genius

    Posts:
    190
    Likes Received:
    0
    Krono, Mar 8, 2007
    #6
  7. Crabcake Johnny
    Offline

    Crabcake Johnny Guru

    Posts:
    14,811
    Likes Received:
    15
    State:
    South Carolina
    For individual you'll be looking at Unicare, Assurant, Golden Rule, Aetna and Blue Cross.

    You can get an Assurant contract at 20% full advance, a Unicare contract at 20% with a 6 month advance, Golden Rule at 15% and if you find a Key Broker who's willing to advace you you'll be set there. Aetna is 15% as-earned and I don't know about Blue Cross.
     
  8. Sam
    Offline

    Sam Founder Administrator

    Posts:
    1,534
    Likes Received:
    58
    No one pays more that 5% on group in MD, until you hit bonus numbers. Carefirst's (BCBS) bonus number is 2.2 but the jump is well worth the wait.
     
    Sam, Mar 8, 2007
    #8
  9. taterpeeler
    Offline

    taterpeeler Guru

    Posts:
    6,999
    Likes Received:
    15
    State:
    Texas
    John Aetna is 20 % in Texas
     
  10. Crabcake Johnny
    Offline

    Crabcake Johnny Guru

    Posts:
    14,811
    Likes Received:
    15
    State:
    South Carolina
    Nice to know I'm getting screwed at 15%. Hey, they only paid 7% last year in CT.
     
Loading...