Small Group Health Carriers

[ABC]

I am seeing some disturbing signs from the carriers in small group.

All of the good people are being moved to large group.

Anyone else seeing these type of signs?

 

[stuy119]

That could be a bad omen, or it could be a good omen. Or, it might just be what it is. I don't think you can look too far into it at this point, as the PPACA verdict, if leaked, would be everywhere.

 

[somarco]

Small group market is dying, even without Obamneycrap. Blame Bush.

 

[moonlightandmargaritas]

All of the good people are being moved to large group.

Did you hear on TV that Joe Theismann's prostate is giving him fits? Prioritize man, prioritize.

 

[leevena]

I don't know if I would characterize it as new. Historically, small group sales were reserved for new or inexperienced carrier reps. It is primarily a transactional sale, requring less training and sophistication than large group. If they suceed, the reps can then follow a career path into large group, national accounts, home office, etc.

The market in general has also had an impact, due in large part to technology, rise of the General Agency distribution system, and the loss of competitors. Computers and the internet has made the distribution of small group products much easier through a GA system. In California for example, most (if not all) of the carriers have eliminated their small group market reps and have given it to the GA. A small group rep in CA will run a carrier about $100k per year before any sales. By giving it to a GA, the carrier reduces that fixed cost to a variable...commission paid when a sale is made.

 

[Ann H]

I don't know if I would characterize it as new. Historically, small group sales were reserved for new or inexperienced carrier reps. It is primarily a transactional sale, requring less training and sophistication than large group. If they suceed, the reps can then follow a career path into large group, national accounts, home office, etc.

The market in general has also had an impact, due in large part to technology, rise of the General Agency distribution system, and the loss of competitors. Computers and the internet has made the distribution of small group products much easier through a GA system. In California for example, most (if not all) of the carriers have eliminated their small group market reps and have given it to the GA. A small group rep in CA will run a carrier about $100k per year before any sales. By giving it to a GA, the carrier reduces that fixed cost to a variable...commission paid when a sale is made.

Very informative answer, Leevena. Thanks.

 

[ABC]

I can only speak from experience but Humana pulled all of their good small group sales people and moved them to another state.
Within a year they were not competitive.
In 4 years they had pulled out of the state for small group health sales.


A small group sales rep can be a good gig because you do not have to bank on all Jan. 1st business. You have renewals all year long.


I see this movement as a bad things to come. When you have a rep that is good and delivers you favors when needed that is a key component to a customer service model. As it stands they are not replacing the position.

 

[somarco]

Humana reps are pulling double and triple duty with all the layoffs caused (mostly) by MLR.

I stopped working small group actively last year and large group even further back.

H1 reps are now Marketpoint (or whatever they call that division) pushing Medicare, individual major med and all their ancillary lines. My rep used to be in the office all the time and readily accessible for help. Last month or so he has been out of the office, out of touch, as Humana is running him all over the place training other reps and new agents.

They are no different from Aetna, Blue or others that started laying off a bunch of folks in late 2010 in anticipation of MLR for Jan 2011.

My local Aetna rep has had his job changed 2 or 3 times in the last year or so. Doing twice the work for less pay than before.

Blue, Coventry, Cigna and KP have also had staff reductions.

 

[VolAgent]

Humana reps are pulling double and triple duty with all the layoffs caused (mostly) by MLR.

I stopped working small group actively last year and large group even further back.

H1 reps are now Marketpoint (or whatever they call that division) pushing Medicare, individual major med and all their ancillary lines. My rep used to be in the office all the time and readily accessible for help. Last month or so he has been out of the office, out of touch, as Humana is running him all over the place training other reps and new agents.

They are no different from Aetna, Blue or others that started laying off a bunch of folks in late 2010 in anticipation of MLR for Jan 2011.

My local Aetna rep has had his job changed 2 or 3 times in the last year or so. Doing twice the work for less pay than before.

Blue, Coventry, Cigna and KP have also had staff reductions.

It seems the only winners in the MLR game are the health care providers, equipment manufacturers and pharmaceutical companies. That much more money has been squeezed out to be paid to them.

I definitely didn't get a refund, but a nice big rate increase.

When is Washington going to figure out until you can control utilization everything else is pointless. Even what providers charge will fall in line if demand decreases. Of course, when they do try to introduce legislation to fight obesity, we complain about government interference and sue.

 

[somarco]

It seems the only winners in the MLR game are the health care providers, equipment manufacturers and pharmaceutical companies.

Not sure I would include providers in there. They have been squeezed too and even more coming with the addition of 16+ million on Medicaid in Jan, 2014.

Then there is the Medicare doc fix that will some day come to an end.

Docs have to buy new software for ICD10 and EMR requirements. That stuff isn't cheap.

Economy is putting more folks in the uninsured category. Even those with insurance are not paying their bills.

When is Washington going to figure out until you can control utilization everything else is pointless. Even what providers charge will fall in line if demand decreases.

Uh, never . . .