UHC Goes to 0% Commission After Jan 1st??

[RayNY]

Are there any co-ops left?

Officially, out of 23 started, 12 are completely closed and 11 are still alive.

As far as I know, all 11 are in financial trouble after not getting "three R" money and will be lucky to make it to 2017.

That reminds me, did CMS throw the "three R" money into the hole created by these failing companies? Or did they withhold it and use it to keep the others alive?

 

[HealthRisk]

Officially, out of 23 started, 12 are completely closed and 11 are still alive.

As far as I know, all 11 are in financial trouble after not getting "three R" money and will be lucky to make it to 2017.

That reminds me, did CMS throw the "three R" money into the hole created by these failing companies? Or did they withhold it and use it to keep the others alive?

3R money was distributed per the regulations.

Reinsurance was paid out based upon the carrier's actual claim costs. Fairly even.

Risk adjustment was transferred between carrier's based upon claims processed. There is a theory that smaller carriers don't have the economy of scale and lost out due to missing or unreported claims. HRNY maintains this was there problem.

Risk corridors is the 3R that was supposed to compensate for uncertainty in the market. All carriers paying in paid 100% and all receivers got 12.6% of what they were calculated to be owed. It is the latter one that blew things up for co-op financials.

 

[insurance5511]

Officially, out of 23 started, 12 are completely closed and 11 are still alive.

As far as I know, all 11 are in financial trouble after not getting "three R" money and will be lucky to make it to 2017.

That reminds me, did CMS throw the "three R" money into the hole created by these failing companies? Or did they withhold it and use it to keep the others alive?

Top Obamacare Official Takes Shifts Blame For Co-Op Failures | The Daily Caller

LMAO!!

 

[somarco]

Obama and his lemmings are like Sgt Schultz of Hogan's Heroes fame.

They know nothing .......

 

[Yagents]

Oh good, the gov't is here to help regulate our commissions.
And maybe it will require the captives like FL Blue to lower their Blue Shield.
They missed not allowing to pay differently on metal levels.

http://www.lifehealthpro.com/2016/0...il_editorial&utm_campaign=01212016&page_all=1

Lee says HealthCare.gov requires exchange producers to tell consumers about all available exchange coverage options.

Setting producer compensation standards is particularly important given the requirement that agents tell consumers about all of the available HealthCare.gov plans, not just the plans from the issuers that pay commissions, Lee says.

In addition to suggesting that HHS should consider setting an exchange producer commission floor, Lee says HHS should:

Prohibit an issuer from having different agent compensation levels for consumers who come in during the open enrollment period and those who qualify for special enrollment periods outside the regular open enrollment period.

Prohibit an issuer from cutting off agent enrollment commission payments.

From the letter:

Agent Compensation - Chapter 5, Section 4:
In California agents and brokers are a significant enrollment channel for exchange members, comprising as much as 45% of the new membership enrolled during the 2016 open enrollment period and they play an equally important role during the special enrollment period. To prevent potential discrimination by an issuer seeking to avoid adverse risk of a membership population, as well as to ensure all issuers fairly and affirmatively offer and promote enrollment, it is suggested that consideration be made to:
 disallow an issuer to have different agent compensation between special enrollment and open enrollment periods;
 prohibit issuers from not paying agents for enrollment; and
 research the value of potentially setting a minimum commission amount so issuers are contributing at least a similar portion of premium to this important enrollment channel.
These policy considerations are particularly important given the policy requirement that agents inform consumers of all available plans and not just those issuers who pay commissions.

 

[russelltw]

Levelized MA commissions here we come! Wonder how much/little commissions will be...hope it's worth our time.

 

[AllenChicago]

Levelized MA commissions here we come! Wonder how much/little commissions will be...hope it's worth our time.

If insurers are leaning towards abandoning the Marketplaces at the end of this year, forcing them to pay commissions and the associated red-tape, will ensure their departure.

 

[TN_agent]

Agreed, AllenChicago. If their hand is forced, they will exit the market or eliminate all independent agents entirely.

Carriers actually want the MA business, most of them are making money on it. The same can't be said for U65 ACA business.

 

[houcoogster]

If insurers are leaning towards abandoning the Marketplaces at the end of this year, forcing them to pay commissions and the associated red-tape, will ensure their departure.

Yes.

I would add "will ensure and hasten their departure".

 

[Yagents]

Wow, an article on what's really happening:

UnitedHealthcare puts up obstacles to sale of some Obamacare policies

UnitedHealthcare apparently took steps to ensure that it did not sell too many health plans on the federal marketplace during the current open enrollment period for the Affordable Care Act.

The steps included requiring paper applications and not giving brokers price quotes online.

"They could not have made it any more difficult," said Chris McArdle, a broker with the Rauser Agency in Milwaukee. "They could not have made it any more clear that they did not want to be writing this business."

UnitedHealth Group Inc., the parent of UnitedHealthcare, made headlines in November when it said it may not sell health plans on the federal marketplaces in the future because of losses on the business.

The potential move applied only to health plans sold to individuals and their families.

UnitedHealthcare, which began selling health plans for 2015 on the marketplaces in Wisconsin, had committed to selling plans for 2016 and could not pull out of the market.

However, the health insurer reduced the commissions it paid brokers for plans sold on the federal marketplace to 2% from 6% and later said it would no longer pay commissions on the plans.

It also required brokers to call the company to obtain price quotes that previously had been available online.

"They would get back to me in the next couple of weeks — maybe," McArdle said.

Brokers also had to fax paper applications to the company, resulting in some problems from lost applications.

"It's fairly apparent they don't want to write any business," said Todd Catlin of Transition Health Benefits.

In a statement, UnitedHealthcare said, "Our actions are consistent with our long-stated approach to continually evaluate the dynamics of exchanges as they evolve and adjust to changes in the market accordingly