HumanaOne Putting FMO's Like HealthChoiceOne Out of Biz?

[YouGotMyMoney]

Friend sent me this email this morning:

Enjoy

Discuss

Recently Health Choice One received notification from Humana One that over the last 2-3 years, there was an error in processing charge backs for some policies that termed in the first 9 months. It seems that the system was not correctly charging back unearned commission. It was recently discovered during an audit and the decision has come from the top Executive Level at HumanaOne that these commissions be taken back from the brokers now.
It is our opinion that is completely unprofessional and unfair that Humana would come to brokers, in some cases 2-3 years later, present an error that was 100% the fault of Humana and accept none of the responsibility. We have fought hard to have Humana overturn this decision, however we were notified last week that despite our efforts, Humana will begin to take these chargeback’s from your commissions starting on the Aug commission run. It may take as many as 5 months before you see all of the chargeback’s run.

This was a global problem and it affected all Humana One partners who were receiving advanced commissions. This was not a Health Choice One problem. I have attached a letter from Humana explaining what has happened. (Although no one at Humana wants to take ownership of this issue and sign the letter.) I have also cc’d our Humana Rep on this email.

I will forward an email to you shortly with the breakdown of the chargeback’s that you can expect to see. I do not have any information yet as to how the chargeback’s will come in. I hope to get some more clarification soon and will pass that on to you.

We sincerely apologize for the inconvenience that this has caused you.


Apparently this isn't just about peanuts and pennies either, as there are some agencies out there that owe several hundred thousand and individual agents who owe over 10k and amazingly $50k+ in some cases, incredible as it seems.

 

[Crabcake Johnny]

I guess is was about...oh....3 year ago and I even posted about it here. I was due "$XXXX" dollars from a particular carrier in renewals.

I checked my bank on the morning of my deposit. Zero. Called commissions and was made aware that "$XXXXX" was being charged back from my renewals from agents I had writing under me in 2004 and 2005.

They said they made a mistake and didn't charge the agents back directly at the time and since 98% of them had blown the business, I was on the hook for all of it.

It took around 6 full months of renewals for it all to clear out. From the time the chargebacks should have been taken out to when they nailed me for them was around 5 years.

 

[STIBROKER]

hahahahaha.....advances will always comeback like bad Chinese food.....healthchoiceone should pay ....not the agent...even though both are at fault not staying on top of biz.....

 

[dgoldenz]

ouch....good reason not to take advances

 

[Norwayguy]

I guess is was about...oh....3 year ago and I even posted about it here. I was due "$XXXX" dollars from a particular carrier in renewals.

I checked my bank on the morning of my deposit. Zero. Called commissions and was made aware that "$XXXXX" was being charged back from my renewals from agents I had writing under me in 2004 and 2005.

They said they made a mistake and didn't charge the agents back directly at the time and since 98% of them had blown the business, I was on the hook for all of it.

It took around 6 full months of renewals for it all to clear out. From the time the chargebacks should have been taken out to when they nailed me for them was around 5 years.

So in 2010 they hit you for chargebacks from 5 to 6 years ago. Good luck making heads or tails from 6 years of commission statements to make sure what they are reporting is correct since it took them that long to even figure out there was a problem. Heaven help you if your not on top of something and figure out down the road a carrier owes you.