So I hear Cigna is going to

[sman]

Just got the following from Cigna:

[FONT=&quot]CIGNA is committed to delivering affordable, quality health plans in the markets we serve. Provisions of the
recently enacted Patient Protection and Affordable Care Act (PPACA) have necessitated changes in order for
CIGNA to remain cost competitive. As a result, effective October 1, 2010, commissions will no longer be paid
on any Individual & Family Plan policy containing one or more Guaranteed Issue customers.[/FONT]

[FONT=&quot]Effective October 1, 2010, this change will impact:[/FONT]

• [FONT=&quot]Existing policies covering one or more persons on a Guaranteed Issue basis[/FONT]
• [FONT=&quot]New policies covering one or more persons on a Guaranteed Issue basis[/FONT]

[FONT=&quot]For questions or more information, call CIGNA Sales Support at 1-877-CIGNA-15, 8 a.m. – 8 p.m. Eastern Time.[/FONT]

[FONT=&quot]As always, we thank you for choosing CIGNA for your business.[/FONT]

[FONT=&quot]* Guaranteed Issue is defined as a case that covers any customer under age 19 who would have been declined coverage prior to
the passing of PPACA or a HIPAA case. [/FONT]

 

[Crabcake Johnny]

Re: And Now the Commission Reductions Begin

...and it begins. So if you write a family plan but a child is included - and that child is GI there's zero comp on the case? Wow.

 

[sman]

Re: And Now the Commission Reductions Begin

I don't currently do any Cigna business, but you better believe if I get someone whose child is on the fence with health issues, Cigna will not be in the mix. And if the other carriers follow suit, I just won't help those people. I don't work for free.

 

[moonlightandmargaritas]

Re: And Now the Commission Reductions Begin

...and it begins.

It actually started in 2008.

Many were in denial of the inevitable then, and I'm sure there are many who still are...

 

[jbage007]

Re: And Now the Commission Reductions Begin

are they actually saying that if you have a perfectly healthy 10 year old dependent, no commission is payable on the case?

or are they saying if you have a 10 year old dependent who would not be insured BUT FOR guaranteed issue, then no commission?

sounds like the former, not the latter

in either case, I guess what you do is tell your customer, look, if you want Cigna, fine - you'll need to pay me $560 to write the case

yeah, that's going to go over like a lead balloon

 

[sman]

Re: And Now the Commission Reductions Begin

They are saying if a dependent would have been declined based on normal underwriting, then no commissions on the entire case. So you bring the company 3 healthy members and one unhealthy (for which they can rate up) and they still pay nothing. I could live with no commissions on the guarantee issue person, but to take away commissions for the entire family is a little overboard. I guess we'll have to use carriers who will write children only plans and place the child with that company and the rest of the family with another carrier.

And how much do you want to bet that now the smallest of things will be considered a reason for a decline under the "old" rules, therefore making the entire case non-commissionable?

 

[Crabcake Johnny]

Re: And Now the Commission Reductions Begin

It actually started in 2008.

Many were in denial of the inevitable then, and I'm sure there are many who still are...

Those who continue to be in denial will end up selling patio enclosures in January.

 

[sman]

Re: And Now the Commission Reductions Begin

In this economy, they'd be better off using the,

"How to Make Mo Money Without Using Yo Money" techniques to make a living.

Those who continue to be in denial will end up selling patio enclosures in January.

 

[moonlightandmargaritas]

Re: And Now the Commission Reductions Begin

Those who continue to be in denial will end up selling patio enclosures in January.

Might have some potential here in Florida - if everybody and his brother hadn't already been foreclosed on...

 

[Post Quartermaster]

Re: And Now the Commission Reductions Begin

I was on my way over here to post the same email......


Of course, I'd expect child only policies to be axed or replaced with very expensive non comp'd GI alternatives next......the big question I have though, is whether or not carriers can legally raise the minimum applicant age to 20 y/o on IFP's to prevent agents from splitting sick children off family policies.....I suspect this will happen sooner than later....