Health Net Drops Agent Commission to 2%

[pdbrian]

By now many of you have probably received the notice from Health Net regarding their PPO plan commission. It looks like the 2% commission will apply to the Silver, Gold and Platinum plans effective March 1, 2014 for all new sales of these plans.

It does not look like this will change on the HMO side for now, but I expect that to come down the pike. But, I do like the paragraph that starts; YOU ARE IMPORTANT TO US.

Now, go sell.

 

[CABenefits]

This happened sooner than I expected. I will not service a policy for 2%. I think exchange business may be dead in a year or two

Michael

 

[rcduggan]

Dear Valued Broker,

At Health Net, part of our responsibility to our trusted partners is to
evaluate our business practices to ensure we are delivering fair and
accurate contractual adherence. This communication is with that spirit
in mind. As you are aware, we recently amended your broker agreement
revising the Individual & Family PPO plan new sales commission from 5%
to 2% effective March 1, 2014.

However, because you submitted business for effective dates of 3/1 and
4/1 prior to the commission change notification, we will pay the 5%
commission for the IFP PPO platinum, gold, silver, and catastrophic
plans effective 3/1/14 and 4/1/14. The 5% commission applies only if new
enrollment applications were received by 1/31/14, and we have identified
a portion of your business as meeting that time frame.

On behalf of everyone at Health Net, I want to thank you for your
business and continued partnership. If you have any questions, you may
contact me, your account executive, or you may email Health Net Broker
Services at

Thank you.
Bill Shepard

----------------------------------------------------------------------------------------------------
William H Shepard
Regional Vice President
Individual & Small Business Group Sales- CA License #0693325
Health Net of California | 11971 Foundation Place, Bld C, Rancho Cordova, CA 95670 |
Mailstop: CA-903-02-17
Phone: (916) 935-1471 | Fax: (800) 517-3081


Here's what's really going -> HealthNet has priced themself out of the individual market for 2014. Why you ask? So they don't have to pay claims on the people initially enrolling first year (the previous uninsured or uninsurable with health issues). Those people will enroll with another carrier and will remain with that carrier for a few years or more. HealthNet has successfully excluded people that they will have to pay out claims for. Move forward a year or two and HealthNet will be the lowest premium available on bronze tier and possibly other tiers sticking it to US AS BROKERS because we will have no choice to not sell HealthNet and on top of it we will be paid 2%. Who do you think you're fooling?

HEALTHNET IS A SLIMEY INSURANCE COMPANY AND I WILL TELL EVERYONE, BROKER, AND CLIENT ALIKE.