Non commissionable PDPs

[Russ]

For WellCare I was told today that no PDP New Business or Renewal commissions will be paid

Aetna will pay renewals for the Choice plan but no New Business commissions.

This will be a tough year for agents with large books that have to be re-written due to multiple plan exits

But rewriting requires something better then what they’ve got or had, in the case of companies withdrawing from the market.

 

[ValeRosso]

Ah, so THIS is where the insurance co's are recouping some the effects from the Inflation Reduction Act, in zero commissions.

 

[Russ]

I tried to tell y'all about WellCare 2 weeks ago...

Yeah you did.

 

[Chazm]

I tried to tell y'all about WellCare 2 weeks ago...

Two weeks ago the govt realized that the bids were way too high. We were thinking there’s a possibility now that WellCare could pay commissions. It was noted on FB that they wouldn’t pay a few weeks ago.

I’m sure WellCare went back, thought about it, and said, “we were brilliant making the plan $0 in 2024. We’ll keep a good premium for 2025 so no one will change and we don’t have to pay renewals.”

 

[Midlevel]

But rewriting requires something better then what they’ve got or had, in the case of companies withdrawing from the market.

MAPD enrollments about to skyrocket I have a feeling.

 

[Midlevel]

Two weeks ago the govt realized that the bids were way too high. We were thinking there’s a possibility now that WellCare could pay commissions. It was noted on FB that they wouldn’t pay a few weeks ago.

I’m sure WellCare went back, thought about it, and said, “we were brilliant making the plan $0 in 2024. We’ll keep a good premium for 2025 so no one will change and we don’t have to pay renewals.”

Assuming if we don’t get paid the FMO’s don’t either? Imagine a client trying to call WellCare to enroll.

 

[sman]

400 PDP clients x $50 each renewal = $20,000 last year....and that's fair compensation for the work involved in advising on each renewal. I said "fair" compensation. It's a lot of hours to survey, shop, and enroll people that need to change. I'd happily pay someone else the $20K to do the work during the insanity of a short AEP.

This year, planning for PDP comp to be close to zero and the work to be even more tedious..... I bought a retire flo subscription, I'll send out the surveys, I'll send an email letting everyone know why they have to self service a bit to get advice, pay a contractor to track the survery and find people with plan mapping problems, formulary holes, etc. I'll encourage that select group to set meetings if needed, but hopefully just confirm via email what plan they want and send them a self enroll PURL.

1. I don't expect to get paid money to sell an unprofitable line of insurance, and that's what PDP is for 2025 insurers.

2. I don't expect to work for free, or take a loss in time-value or contractor fees.

I don't know how to square the 2 items listed above, but I have faith that a client who trusts me with their medical insurance decisions will ulimately be a profitable asset. I'll just be patient while the market figures it out and take the L this year and defend my book.

I'll even go full bore contrarian and HELP people whose PDP agents have abandoned them. I've got time and confidence, and switching that healthy person with a newly bloated PDP will result in multiple underwritten Med Supp policies in Feb/March when I slow down. I'll collect the medical data during the drug app and turn crisis into opportunity. And I still reserve the right to bitch and moan all AEP and question my sanity and strategy, and I will exercise that right.

I’m in the same boat, same type of numbers. And you better believe I will bitch and moan the entire time. Politicians screwed me out of $2,500 per month with ACA and now they’re going to screw me out of $20,000 or so in renewals. Potentially ongoing.

 

[hockeyday]

NMA's passed down the information today.

Who is nma?

 

[hockeyday]

NMA's passed down the information today.

Did they pass down the rates?

 

[kgmom219]

Screw the commissions.
Are they going to offer a low premium plan?