Uhc Commission Addendum

Discussion in 'Senior Insurance Forum' started by superdave, Jul 16, 2013.

  1. superdave
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    superdave Well-Known Member

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    Update to Your UnitedHealthcare Contract Effective Immediately​

    While UnitedHealthcare Medicare Solutions has experienced steady growth, in a challenging economy we need to continue to address increasing market and reform pressures, evolving consumer expectations and simplification of our offerings to remain well positioned in the market place.

    This means we must evaluate all aspects of our business and consider operational costs to ensure we can further deliver sustainable products and services to our consumers. As a result, we have made changes to amend your UnitedHealthcare agreement as follows:



    The above link is an amendment to your UnitedHealthcare contract, which becomes effective August 16, 2013 and includes (please note: no action is required - changes will take effect automatically):

    Updated UnitedHealthcare Zero-Commissionable Plans and Counties for Specified HMO, PPO, UnitedHealthcare Dual SNP and Institutional SNP Plans for 2013 Member effective dates on applications signed between August 16, 2013 and December 31, 2013.
    Updated Care Improvement Plus (CIP) Zero-Commissionable Plans and Counties for Specified CIP Medicare Advantage, Dual Advantage, SilverRx, GoldRx, ChromeRx, and CopperRx, Plans for applications signed between August 16, 2013 and December 31, 2013 with 2013 Member effective dates.
    Updated Zero-Commissionable counties for UnitedHealthcare MedicareDirect PFFS Plans H5435-001 and H5435-014 for applications signed between August 16, 2013 and December 31, 2013 with 2013 member effective dates.
    Please understand with these changes some plans will be reduced to a zero-commission for the balance of the 2013 calendar year. While overall enrollment and sales are always an important factor in our business, our core value is to support consumers in choosing the right plan to fit their needs. Should one of the zero-commission plans still be the primary choice for a consumer, they may also choose to enroll directly through Telesales or via online enrollment.

    Thank you for your support, continued business and commitment to helping our members live healthier lives. If you should have additional questions, please contact the Producer Help Desk

     
  2. MedSuppPro
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    MedSuppPro Well-Known Member

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    Ah yes, the annual UHC hose the agent addendum.
     
  3. policy doctor
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    policy doctor Well-Known Member

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    Well it certainly affects me here in metro Georgia. Thankfully I have other carriers...oh wait, Coventry will only pay for 6 months then renewal commission after that if after July. Hmm....Humana has variety of plans....guess they will get my business. Even with reduced commission for balance of this year I STILL come out ahead. Couple companies no longer available.

    We're getting a new Dual/Snp plan for 2014...GA peach.
     
  4. BobbyMcGee
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    BobbyMcGee Well-Known Member

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    Reading between the lines.

    :D
     
  5. policy doctor
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    policy doctor Well-Known Member

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    Meant to remark on that too and forgot; preoccupied with these dumb modules.

    Yes, it occurred to me that if you went ahead and wrote them up even at zero commission...you would be eligible for an renewal commission in 2014 as AOR. Looks like they prefer to keep business inhouse and sidestep agent.(surprised?!)

    I had complained about the lack of leads thru the ICA channel...and suspected telesales was grabbing them. Now I see (said the blind man)./
     
  6. wehotex
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    wehotex Well-Known Member

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    Is this only for certain service areas?
    According to the addendum, there would be no commission all throughout the AEP for the affected areas.
     
    Last edited: Jul 17, 2013
  7. mustfastpitch
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    mustfastpitch Well-Known Member

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    Yes, limited areas. If you click on the link to the amendment it lists the counties affected in the state.
     
  8. Midlevel
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    Midlevel Well-Known Member

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    My wife heard me screaming this morning while checking my e-mail. After I calmed down I read the whole contract and realized it doesn't affect my service area but is getting eerily close to me. I can't believe they can do this crap. Problem is there is nothing else competitive to offer except Medicare Supplements.
     
  9. wehotex
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    wehotex Well-Known Member

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    Why else do you think that they would do it? If there was competition involved, then UHC would not rock the boat. Humana does the same thing. In competitive areas, the commissions are raised. In an uber-competitive new (for Humana) market like so Calif, Humana started paying the same commission as all of the other carriers instead of their typical skimmed milk commission because they needed to make an effort to introduce the calif agents to a "foreign" product.

    This is a letter from a MAJOR FMO:

    UnitedHealthcare Commission Amendment

    You have no doubt received the contract amendment from UnitedHealthcare specifying MAPD plans that will become non-commissionable on August 16. We received this information at the same time and were just as surprised as you by the news.

    While this cannot be viewed as anything other than bad news, it is also not a secret that Medicare Advantage carriers are facing a 4-5% reduction in funding in 2014.
    Whether this is an isolated situation that is affecting only UnitedHealthcare; or if this is just the first shot fired in a volley of changes in the MA market in the coming weeks remains to be seen. I expect it is likely the latter. That being said, we expect that the MA business will continue to be a viable one in 2014, and in fact, we expect to see competitive products in many markets from United and other carriers.

    We don't have much more information on this issue right now, but you can be sure that we will pass along any and all news in this regard as soon as we receive it.

    Thank you for your business,


    MAJOR FMO CEO

    Strange, I thought that the MA plans were now receiving a 2-3% increase for 2014 instead of the planned reduction that would have occurred. WHICH IS IT?
    I think that this organization is trying to desperately save face for its "bread and butter" MA company. How is that Aetna is EXPANDING into other markets? How is that Humana is actually increasing its commissions after begin so CHEAP for so many years? UHC lost $$ earlier this year in the first quarter. I think that this is an isolated incident to slough off less profitable business. Maybe CIP is not so good at containing costs as UHC thought when they initially purchased them? Gotta make that profit somehow.

    http://www.bloomberg.com/news/2013-...arter-profit-slips-as-medical-costs-rise.html
     
    Last edited: Jul 17, 2013
  10. BobbyMcGee
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    BobbyMcGee Well-Known Member

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    UHC made $5 billion net income last year and who knows what they pay AARP. I've heard 5%. Yep. We must help them by working for free.
     
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