Reminder: CA HBEX August 23 Webcast - Agent Comp

Dave020

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Right around the corner already. As I posted, the California agent payment options for both the IFP HBEX and the SHOP Exchange were pushed from the July meeting to the August meeting.

Barring any changes during the upcoming meeting, final determination will be made on HOW California health agents will be paid for sales in both exchanges.

Current recommendations are for carriers to pay comp to agents equally inside and outside of the IFP HBEX and the SHOP small business exchange will pay agents directly from the group exchange instead of from the carriers. The SHOP is very similar to the old HIPC/PacAdvantage program.

As to comp levels, we will have to wait likely well into 2013 to find that out. IFP is the big question mark and we won't know more than how we will be compensated until the carriers begin releasing commission schedules.

http://www.healthexchange.ca.gov/Bo...gust_23_2012/CHBE_Aug23BoardMeetingAgenda.pdf

Items VII B and VIII B. These will be after the lunch break probably mid afternoon.
 
In reviewing the materials for tomorrow's HBEX webcast meeting, I note that the HBEX has issued a resolution letter on IFP agent payments as part of the materials for tomorrow.

According to HBEX Resolution 2012-38, HBEX supports the Board Recommendation Brief. The Brief recommends Option A - Plan Pays Agents Inside and Outside of the exchange with commission based on market terms and parity level commissions inside and outside of the exchange.

CA HBEX August 2012 Brief

CA HBEX August 2012 Resolution 2012-38

HBEX August 2012 IFP Agent Payment Options Presentation (supports Option 1 carriers pay agents)


Small Group:

It also looks like the SHOP Exchange will deal primarily with administration issues and the impact on General Agents. I don't expect a decision on agent compensation for the SHOP Exchange tomorrow. That being said, it appears the HBEX favors paying on market parity for exchange sales from the HBEX direct to the agent and outside direct from the carrier.

It appears that the SHOP Exchange will function like HIPC/PacAdvantage did a few years ago. Biggest issue is not agent comp, but whether or not there will be GA comp (overrides) from the SHOP Exchange. This will be discussed tomorrow afternoon after the IFP section.

Meeting Materials August 23 2012 HBEX Webcast

Webcast link:

CAL-SPAN Streaming Video Home Page
 

I see it's about to start streaming again, where are they in the agenda items?
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This is just flat out sad. The Avocado exchange? "Cali" is for young folks?

What's in the Exchange Name? - Capitol Desk - California Healthline

Not one word about the result of the agent payment vote which supposedly passed for IFP. Carriers will pay agent commissions, and will not be funneled through the exchange.
Also, no General Agents allowed in IFP market.
A suggestion was made to build a "transition to medicare area" on the website for a warm hand off. Your future medicare biz will come from the exchange users, and you may not ever get their ear.
 
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Sounds like the GA model is going to be gone.

Would that include call centers that are operating on GA contracts?
 
Be aware, CA has legislation pending in Sacramento to eliminate agents using any type of exchange copy-cat url, calling themselves an exchange or building a web site or domain that could be interpreted as being or pretending to be the CA HBEX.

Just FYI.
 
I look at Medicare.com and other sites that have gone out of their way to get permission from CMS or DOI's to use disclaimer language to ensure that consumers understand it's not the official site, and to click on this button to get to the official site. Or this one for Medicaid. It's all about growing enrollment.....right? Once the rules are set, you work within them. We r on the same team.

If they call it the Avocado exchange, can I call mine the Orange exchange? Or is there no end to eminent domain of domains? Agents are being allowed in the exchange, because they need us to reach the most people, and leverage our ingenuity. We will bring in 10X what any navigator brings in, and they know it. All of their decisions were based upon leveraging the existing infrastructure and distribution already in place. From payment aggregation by insurers, to commission payments made by insurers, licensing and certification of producers to the insurers, networks, claims, etc. 3 hours on 1 webinar, and they have a sales force overnight. Can't say that about navigators.
 
I would say that information is good news for our industry.

Do Cali. agent make a commission selling Med Cal?

Has distribution platforms been discussed? Will their be quote engines that take an insured to an exchange application?
 
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