Is this considered rapid disenrollment?

[jack3454]

If you enroll someone for an Oct1 start date then say a better plan comes along for Jan1 and you switch them during AEP, would this be a rapid disenrollment even though its a different year?

 

[Special Agent]

If you enroll someone for an Oct1 start date then say a better plan comes along for Jan1 and you switch them during AEP, would this be a rapid disenrollment even though its a different year?

No if switch is made using AEP election code however it is the carriers option whether or not they will charge back but you don't get rapid disenrollment demerits on your permanent record.lol.

I believe most plans don't charge you back including UHC who use to do charge backs up until 2023.

 

[DonP]

There’s no rapid disenrollment what I’ve read the last 3 months of yr .Yes you get chargeback but it’s not considered rapid disenrollment as all plans written last 3 months of yr basically term 12/31 . But in the op’s note Thats irrelevant . Write them 10/1 you get prorated commission until 12/31 . Write new plan starting 1/1 you get 12 months comp prorated

 

[Special Agent]

There’s no rapid disenrollment what I’ve read the last 3 months of yr .Yes you get chargeback but it’s not considered rapid disenrollment as all plans written last 3 months of yr basically term 12/31 . But in the op’s note Thats irrelevant . Write them 10/1 you get prorated commission until 12/31 . Write new plan starting 1/1 you get 12 months comp prorated

Well it is 3 extra months of commish if they don't charge back.I know for sure that UHC now lets you keep that 3 month if they switch plans in AEP

 

[DonP]

Well it is 3 extra months of commish if they don't charge back.I know for sure that UHC now lets you keep that 3 month if they switch plans in AEP

Yes there’s no chargeback as there’s no rapid disenrollment last 3 months if yr . Technically all plans term at the end of yr . Go to Jarvis and pull up any plan you’ve written this yr . Look under application status . All your plans wrote this yr will have term date of 12-31 regardless if you move them during aep

 

[Special Agent]

Yes there’s no chargeback as there’s no rapid disenrollment last 3 months if yr . Technically all plans term at the end of yr . Go to Jarvis and pull up any plan you’ve written this yr . Look under application status . All your plans wrote this yr will have term date of 12-31 regardless if you move them during aep

Right Jarvis always has showed end date for last day of year but they use to charge you back for those 3 month if you enroll them in a different plan for 1/1 even if you used AEP code-starting for 2024 they don't

 

[TwoCents]

From the Code of Federal Regulations 422.2274(d)(5)(iii)(A)

(iii) Rapid disenrollment compensation recovery does not apply when:


(A) A beneficiary enrolls effective October 1, November 1, or December 1 and subsequently uses the Annual Election Period to change plans for an effective date of January 1.

Federal Register :: Request Access

 

[Tscholar]

There’s no rapid disenrollment what I’ve read the last 3 months of yr .Yes you get chargeback but it’s not considered rapid disenrollment as all plans written last 3 months of yr basically term 12/31 . But in the op’s note Thats irrelevant . Write them 10/1 you get prorated commission until 12/31 . Write new plan starting 1/1 you get 12 months comp prorated

so are you saying any plan that starts the last quarter will not get charged back for those months if someone changes plans during AEP for Jan 1? bc i have the same situation, have a 10/1 plan but I want to put her a different plan for 1/1.

 

[DonP]

so are you saying any plan that starts the last quarter will not get charged back for those months if someone changes plans during AEP for Jan 1? bc i have the same situation, have a 10/1 plan but I want to put her a different plan for 1/1.


100% thats correct. No chargeback . Actually thats been one great thing about Humana over the yrs . Example 1/1 effective date . You get advanced 12 months commissions . Plan terms 2/29. Humana only recaptures 10 months of commission recapture even though it’s technically a rapid disenrollment . All other carriers thats a full 12 months of chargeback

 

[Fisher]

so are you saying any plan that starts the last quarter will not get charged back for those months if someone changes plans during AEP for Jan 1? bc i have the same situation, have a 10/1 plan but I want to put her a different plan for 1/1.


100% thats correct. No chargeback . Actually thats been one great thing about Humana over the yrs . Example 1/1 effective date . You get advanced 12 months commissions . Plan terms 2/29. Humana only recaptures 10 months of commission recapture even though it’s technically a rapid disenrollment . All other carriers thats a full 12 months of chargeback

That's a horrible example. OP is asking about a T65 for Oct, not a Jan 1 AEP case.

The answer is correct; it's just a horrible example.