They're Coming Out of the Woodwork

[Crabcake Johnny]

I'm an independent health insurance agent with 23 years experience. I am looking for alternative income sources. In the last 30 days, I have gotten notices from every health insurance company I am appointed with. They have all informed me that they are going to cut commissions for all policies written after January 1, 2011.

The 20% commissions are not going to last much longer. They are going to be cut in January and be eliminated completely in 2014. Today's independent health insurance agent will have to become a government employee if the wish to sell health insurance in 2014 and qualify for a Navigator contract. There will be no commissions for major medical health insurance for people under age 65 unless Obamacare is modified.

Can you tell me which carriers have sent you letters stating they are going to cut compensation?

 

[djs]

Odd. None of my carriers have stated that they are cutting commissions.

I assume you have gotten lots of letters saying commissions may be cut though. I don't think anyone has a letter saying what the new rates, if implemented, will be.

I think you are hanging onto a false hope that commissions won't be cut. Maybe not now, but soon.

Dan

 

[Crabcake Johnny]

I have not received a single letter stating commissions may be cut. I've receive a few letters stating that new commissions schedules will be posted later this year.

I'm not trying to be smug. I fully understand that a letter stating that a new comp schedule is coming out likely means lower comp. I however, do not have a letter from any carrier outright stating that they are lowing comp.

Out of 6 carriers in MD I only have letters from two - GR and Aetna - stating that a new comp schedule will be posted. GR's in December, Aetna's in November. Not a peep from the other 4.

 

[aheff]

healthagent- What is your point? The letters that all of us have received say the same thing that commissions might be altered next year. The implications are crystal clear- that commissions WILL be cut.
So, what is your point?

 

[Fisher]

healthagent- What is your point? The letters that all of us have received say the same thing that commissions might be altered next year. The implications are crystal clear- that commissions WILL be cut.
So, what is your point?

I would say that his point is that playing the 'What-If' game must be fun if you've got nothing better to do.

Just a guess...

 

[bill3173]

I concur, Healthagent is the only one making a point.

 

[Crabcake Johnny]

Sounds good except there's no mandate until 2014.

 

[insagt]

Letter received from Cigna health care. Cutting commissions from 5.5% to 2% in NJ.
Capital BC in PA cut commission from 5% to $24/enrolled member/subscriber.

The rest will follow.

 

[TampaJR]

We were informed more than a month from my MGA that all individual health carriers will lower the commission effective 1/1/2011. The insurance companies don't know what the new commissions will be, but the rumor is they will be significantly lower.

 

[sman]

Really bad case of the grass is greener in someone elses pasture.

The grass is greener because there is more crap in the other pasture.