Reminder: CA HBEX August 23 Webcast - Agent Comp

[Dave020]

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?

Currently there is no broker comp for Medi-Cal nor Healthy Families plans. No comp is intended under CA reform for those programs, just the "cost of doing business" for agents. In the past, both programs have paid a small fee $25 or $50 per enrollment but that was discontinued some time ago. I know at least one if not two agents on this forum hold the CAA and EE designations to enroll those programs, but they don't get paid on it anymore either.

Quote engines will need to be addressed but I expect the biggies like Norvax and Quotit to survive. The algorithms have to be changed to ensure that any quote engine provides plan comparisons on a fair and equal basis.

 

[Dave020]

Web cast has been put up on the HBEX site from the 8/23 meeting.

FF to about 40 minutes for the start of the agent compensation discussion and comments.

Resolution was amended to include future evaluation of web based agent sites to comply with the exchange sales and marketing rules.

Also some "interesting" comments about agents from some of the consumer groups.

Enjoy.

Cal-Span.org - HBEX - Video Archive Page

 

[GreenSky]

Web cast has been put up on the HBEX site from the 8/23 meeting.

FF to about 40 minutes for the start of the agent compensation discussion and comments.

Resolution was amended to include future evaluation of web based agent sites to comply with the exchange sales and marketing rules.

Also some "interesting" comments about agents from some of the consumer groups.

Enjoy.

Cal-Span.org - HBEX - Video Archive Page

I'm too busy to watch, with all the golf and flying - and prospecting. Don't forget the time spent prospecting.

Can you provide the cliff notes?

Rick

 

[Dave020]

Lujan: "Agents will be a big help, we need them, let the carriers pay them market rates in or out on parity"

Board: "Sounds good, Michael"

Lujan:' We need to watch out for web based agents tricking people into thinking they are the exchange or using algorithms to generate unfair plan choices based on comp from the insurers"

Peter Lee: "Let's amend the agent comp resolution to address in future exchange oversight of agent marketing"

Board: "Cool"

Board: "Votes for agent compensation resolution to be paid by insurance carriers in and out equally"

Consumer Groups: "Agents are crooks so we have to keep an eye on them. Especially Bronstein"

Board: "Will do"

Or something like that

 

[insurehound]

Dave, a little confused...I was reading through the Board Recommendation Briefs for both SHOP and Individual. Are these still just recommendations or have they been approved?

...also would like to thank you again for all your work and insight. You have helped me focus on what's important information and what is speculation.

 

[Dave020]

Agent compensation arrangments for CA Exchanges are approved as of the last meeting. IFP was approved "as ammended".

Individual Exchange each carrier pays agents commission on an equal level inside or outside of the Individual Exchange.

SHOP pays directly to agents at market comp levels that are currently paid outside of the small group exchange. SHOP=PacAdvantage. Same exact model and payment/premium system.

"as ammended" was to add consideration for oversight of web based agents/agencies to ensure they certify/comply with IFP Exchange and don't try to lure people into specific plans that may generate higher commission by setting up algorithms to generate the higher commission carrier's plans. We have to present all options in an equal, fair and balanced way inside of the exchange.

You can watch the web cast (now available on the HBEX site) and they deal with the IFP Exchange about 40 minutes in.