Pre and Post ACA Pricing in CA

[DS4]

Also, you may get commission on the subsidized and unsubsidized portion separately.

Several months ago, Michael Lujan, Sales/Marketing Director for Calif Exchange told us we would get paid on the subsidy.
I'm having a hard time believing this. Seeing will be believing.

 

[stuy119]

There won't be any advances, that's for sure

Good. That will force out some of the lower-quality agents out there.

 

[dgoldenz]

We aren't talking about 'before', we are talking about Obamacare and OE. You don't get all year to enroll 500 members. For 2014, you get six months. Beyond 2014, you get the same ten week period as Medicare. Of course you can bank on getting a lot of enrollments during lock in due to life events, but you won't find me with that strategy.

Like I said, you are convinced that this is a good compensation package and it's workable, go for it. I am worth more than $100 per member per year. I get four times that amount for MAPD.

I was doing 150-200 apps/year up until about a year ago when I started shifting away from health insurance because of the uncertainty with commissions going forward. Have not spent a dime on health insurance marketing and still doing about 70 apps/year from referrals and call-ins. People will still be coming off group plans and want individual coverage instead of COBRA, which would fall outside the open enrollment periods.

$100 per member is not ideal, but it's better than getting 2% commissions. Until carriers announce their comp it's just useless banter anyway.

 

[Quotebroker]

Several months ago, Michael Lujan, Sales/Marketing Director for Calif Exchange told us we would get paid on the subsidy.
I'm having a hard time believing this. Seeing will be believing.

I'm having a hard time believing how you could make a living off these cases if you weren't being paid on the subsidy as well, regardless of the % being 2 or 5 or 10 or whatever it being bandied about.

The carrier gets the full premium number, the comp should be on the full premium number. Perhaps some timing allowance/concession based on the subsidy being in flux.

 

[Yagents]

With subsidies, some will be paying $50/mo. At 5%, that's $2.50 a month. Not gonna happen. More importantly, the subsidy amount can change monthly, so the commission structure would not be structured only on non subsidized portion.

If so, we will all boycott, because the carrier will be making out like a bandit with double the premiums X 20% MLR. If so, buy their stock.

 

[kahlestyle]

plus in CA doesn't commish have to be same in and out of exchange?
and if so, commish on full premium since no gross/net scenario outside

 

[Ann H]

Let's not follow a scare story about commissions only being on the unsubsidized portion of the premium. Todate I've never heard an insurer hint at that, and with every other subsidy or tax credit I've ever seen, commission has been on the full amount. That was true of the AZ tax credit, the federal small business tax credit, the COBRA subsidy, and all employer contributions. There is no precedence to point to for the fear that it will happen now.

 

[Yagents]

If you can't beat em', regulate them

Attorney General Doug Gansler calls for cap on health insurance exchange rates in Md. | WashingtonExaminer.com

Attorney General Doug Gansler called for the plans to be capped at no more than 5 percent more than what the same plan would cost someone who bought it outside of the health exchange.

CareFirst BlueCross BlueShield, the largest insurer in Maryland, has proposed individual exchange plans that average 25 percent more than nonexchange counterparts. The company's proposed exchange plans for small group insurance are about 14 percent costlier than non-exchange plans.