Typical Group Health Benefits Producer Commission Payout?

Discussion in 'Employee Benefits Forum' started by JoaoP, Jul 19, 2015.

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  1. JoaoP
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    JoaoP New Member

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    Hi all, just have a question about what the typical producer payout for group health is.

    I know for P&C it's typically 40% of the revenue brought in, is it the same for group health?

    I am specifically asking for producers with a salary, what percentage of revenue is typical on say a 50K base?
     
  2. NYinsurance417
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    NYinsurance417 Expert

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    Salary?? You don't get a salary for benefits producer. You could get a draw which a loan on future commissions. Typical split is around 40-50% small group.


     
  3. scagnt83
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    scagnt83 Guru

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    On a $50k base salary that is a true salary then your comp would be very small. If you gt a salary you are most likely just an enroller and not actually bringing clients through the door.

    Group Health comp is very state specific and carrier specific. Most carriers in most states have gone to a flat fee per employee. If you are getting a $50k salary then you should expect maybe $5 per enrolled employee. Average full comp to the GA is probably around $15-$30 per enrolled employee depending on state/carrier.

    Self funded is the one exception. Often they pay a traditional % of total premium. Total comp for that is probably around 5%-25% depending on product/state.
     
  4. mkd1204
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    mkd1204 Expert

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    In NJ, the producer/agency commission is usually around 5% with the GA getting additional 1.5-2% override.

    What you will personally get will depend on your contract with your agency/ employer..

    Our individual health accounts are mostly per member per month around $10-15..
     
  5. leevena
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    leevena Guru

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    Suggest doing a cost-benefit analysis from your employer perspective. Add to you salary an additional amount to cover your employer other costs, such as taxes, overhead, etc. That is the amount the employer needs to recoup just to break even with you. Keep in mind, there may be incremental costs associated with your sales efforts that you may need to account for.

    Now make an estimation of what revenue you expect to generate. This will depend on your market size, product mix and commission levels. Prior posts above have a good explanation for you to build from.

    This is a wild guess, but let's assume that your employer cost for you is actually $75k. If you generate $100k of annualized revenue you can see that your % should be low.

    You will need to do this for renewals too. Don't forget to add a non-renewal factor to your calculations. This is a basic discussion.

    By the way, contrary to some posts, I have seen many benefits producers on a salary. It is not the predominant comp model, but it is out there.
     
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