Med Supp renewal commissions

[GreenSky]

Is it typical (Mutual of Omaha, Continental, etc) to pay renewals based upon the initial premium?

Here in California, my med supp renewals are based upon the new premium by Blue Cross, Blue Shield, Health Net, etc. However, I just looked at my new Mutual of Omaha/United World contract and it states commissions are based upon the initial premium.

Should I shop around for a better contract or is that just the way things work?

Rick

 

[Vandenberg]

Rick,

Most of the Medicare Supplement carriers do not pay commissions on rate increases. I have heard that BC/BS pays commissions on rate increases in some states. What are your commissions with BC/BS? Are they comparable to your other carriers?

 

[GreenSky]

Rick,

Most of the Medicare Supplement carriers do not pay commissions on rate increases. I have heard that BC/BS pays commissions on rate increases in some states. What are your commissions with BC/BS? Are they comparable to your other carriers?

In California, Blue Cross pays 13% level forever, Blue Shield and Health Net are 20/10. All based upon the current premium.

Maybe I'm just spoiled with the commission and the ability to ride my motorcyles 12 months out of the year.

Rick

 

[sman]

In California, Blue Cross pays 13% level forever, Blue Shield and Health Net are 20/10. All based upon the current premium.

Maybe I'm just spoiled with the commission and the ability to ride my motorcyles 12 months out of the year.

Rick

Yeah, UW pays on the initial premium. Something is better than nothing. If there were a carrier more competitive here, I'd definitely be using them. I'm sure within the next year or so, another carrier will show up with their "new" Med Supp and everyone will be moving to that one.