Humana commissions

[somarco]

H1 changed their commission schedule in GA for January 1 from 20/5 to 17/8.

For the last several months they have been paying me on the old schedule and I just assumed I was grandfathered in.

Today I was checking my statment for 5/15 and I have 4 pgs of charge backs where they are backing out the 3% "overage".

I have written enough business with them that I will still get a check, but that is a lousy way of doing things.

 

[The Rabbi]

H1 changed their commission schedule in GA for January 1 from 20/5 to 17/8.

For the last several months they have been paying me on the old schedule and I just assumed I was grandfathered in.

Today I was checking my statment for 5/15 and I have 4 pgs of charge backs where they are backing out the 3% "overage".

I have written enough business with them that I will still get a check, but that is a lousy way of doing things.

Golden Rule just stopped paying the agency I am connected to due to excessive chargebacks.

It seems to be a trend with health ins., early termination. One third of my GR policies terminated and I never knew when it happened. Not that I could have saved them - it would have been nice to know.

The economy has to be at play here. I was told that the chargebacks have increased in the past year and half.

 

[Crabcake Johnny]

When Aetna was new in MD I had about 2 months worth of clients signed up where I didn't received any commissions for over 4 months. Called and turns out they had not been debited. Then Aetna nails 'em all with between 3 to 5 months of premium at once - bounces checking acct's left and right.

Most canceled, I never did get paid. I guess welcome to insurance.

However, regarding commissions, I wonder how it would work if all carriers pulled 5 points on the front and added them to the 1st yr renewal. Would be an interesting concept.

 

[dmiller90]

Golden Rule just stopped paying the agency I am connected to due to excessive chargebacks.

It seems to be a trend with health ins., early termination. One third of my GR policies terminated and I never knew when it happened. Not that I could have saved them - it would have been nice to know.

The economy has to be at play here. I was told that the chargebacks have increased in the past year and half.

Sounds like you dont have control of your own buisness? and how did you lose 1/3 of your customers? How could you lose so many clients without knowing? Does not sound like your tracking your current customers very good, or not at all. No the problem is that too many agents are just writing GR due to the advances offered, and have no idea what they are doing. I am glad GR is shutting down these tiny churn and burn shops.

 

[somarco]

Golden Rule just stopped paying the agency I am connected to due to excessive chargebacks

Health Benefits Direct?

 

[dmiller90]

Health Benefits Direct?

Just plain ole Prospect Zone Leads at your best

Never, to much volume, Obviously its a small GA handing out Advances like candy, and GR is getting huge Chargebacks due to this problem, has nothing to do with the economy. It boils down to Agents not knowing what they are doing and slamming them into a GR policy to pay the bills. They are clamping down on these shops and will now only pay as earned. 1/3 of Clients? I would be embarrased to even post such results.

 

[bill3173]

Thank you. I feel a 100% better about the way I do bizness. I don't take advances and I don't remember the last time I lost an IM client, and STM clients often renew, though I warn them after 12 months, to get into an IM. After reading about all of this churn and burn and getting big advances, it seemed like I was missing out. Good to see your comments.

 

[Crabcake Johnny]

GR needs to restructure their advance program to only issue advances until after the offer has been signed and returned.

 

[TXINSURANCE]

GR has tightened up advances big time - I had to jump through major hoops and a lot of paperwork to get advances as a Key Broker.

We take advances on our agency production, but we do not offer advances to sub agents. Instead we give 22% and free leads - truth be told I don't want the liability of the advances outside of my own shop.

Internet business retention is horrible.

It will get worse as the economy sinks. People do not pay their bills - imagine if everyone had to "mail" their group premiums every month instead of taking directly out of their check.

Health Insurance is very low on the priority scale, and the government will reward your irresponsibility and give you free service anyhow - so why pay the bill. Welcome to America.

 

[somarco]

Internet business retention is horrible.

This is a repeat line with you.

I have not had that experience.

For the most part, my business sticks. Most of the folks I have lost found jobs with health insurance benefits. Even then, some of the time I kept the dependents and the working spouse went on the plan.