Humana Commissions

[AllenChicago]

They emphasized that it would be at least the 10% we are currently being paid and it would be on the entire premium, subsidy and all. If they notify you of a local meeting be sure to go, I learned quite a bit about their corporate objective, it is focused on the over 65 market but they are using the under 65 market to "shine" and role those into their over 65 products. How much is BS, who knows. I know those in the meeting were really excited that we would be paid in this fashion and on the entire premium. Heard a rumor that a very large local medical center would not be in the Blues network and Humana would have them. Who knows, it would be a huge advantage for Humana if this were so, can't imagine not having them in my network.

Thanks for the detailed reply, BlueMarlin. I assume that you're in a state where Humana is a major player. They've never held a local meeting in my (Chicago) area, but there is a Webinar coming up next week to explain what they're going to do with existing Non-GF IFP clients. I will be in on that.

Some companies play word games when it comes to commissions. They could say, they'll pay the same percentage, but don't tell you that it's based on a smaller amount than the gross premium. Others could say that they'll pay on the full premium, but not tell you what the percentage is. They'll just proclaim that you'll earn "as much in 2014 per policy as you earn today!"

You mentioned that Humana really wants to get in good with the Under-65 crowd so that they can be the carrier-of-choice for those people when they hit age 65. That's a good long-term strategy. It's what Blue Cross did/does successfully here in Illinois.
ac

 

[SamIam]

Allen, I'm in Chicago & Midwest Insurance Brokerage Services told me that it will be 10% on everything. I use BCBS & Humana with them. I've put the email on a previous post & I spoke to them personally. But on the flip side we won't know until we see it in writing.

 

[Quotebroker]

...but what will the renewal be?

 

[SamIam]

That I forgot to ask.

 

[bluemarlin08]

They said renewals will be unchanged

 

[djs]

Get it in writing.
Since 10% doesn't work mathematically, I doubt it happens.
If its in writing, I'll believe it.

Unless they are really desperate to buy the market, I can't see this really coming together.

Dan

P.S. Wouldn't surprise me if the guy holding the meeting was given some misinformation......

 

[bluemarlin08]

It was his district manager that interrupted him and took over the meeting to tell us. He discussed the 80/20 rules and this is when he explained that they were willing to not make much on the individual side to get the over 65 market.

 

[djs]

Somebody smarter than me will have to look at what sort of reserves Humana has to be able to grow this way. My guess is they will close for new business pretty quickly if they roll this out in to many areas.

Not make much money has little to do with it. At 10% commissions, they are probably at a loss overall. Thats okay, you buy the market and then do a rate adjustment, I get that. But the few rates for the exchanges I've seen for Humana, they are buying the market with low rates, significantly.

This does not seem to be a formula for long term success, but if they have the reserves, they can get a lot of policies on the books pretty quickly.

Dan

 

[anonymous1]

I think it's doable especially since our govt is subsidizing most of the premiums your going to have people pick high deductible this whole set up looks to me like med advantage set up. Govt subsidizing private insurance to provide coverage.

 

[bluemarlin08]

One thing the manager said that surprised me, most of you might know this, but I didn't, was when I asked him how the IRS is reimbursing, he said the providers would get reimbursed at the end of the year. Seemed odd not to get your money sooner.