Is that for renewal years also?
4 person family would pay $72/mo?
On a $300/mo premium, that equates to 6%, on $600/mo policy it is 3%
Forgive me, I work only on % of premiums now.
4% for IFP... is It Enough
- Thread starter PhxSunsFan
- Start date
Is that for renewal years also?
4 person family would pay $72/mo?
On a $300/mo premium, that equates to 6%, on $600/mo policy it is 3%
Forgive me, I work only on % of premiums now.
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Renewal is $12 PMPM. New business only. Policies in force no comp schedule change
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the only policies that will stay in force our grandfathered policies correct?
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It's a bit tricky. They are honoring the commission at time of enrollment, no matter the current plan. So with Anthem there are three scenarios:
New member 1/1/14 never a client = 18pmpm
Member effective (roughly) 9/23/10-12/31/13 = Anthem will pay original renewal (6% at the top) on original commission , not on exchange premium
Member effective 9/22/10 and before = 10% on the premium they are currently paying, exchange or otherwise
The conference call leader wasn't the most eloquent but this is what I gleaned
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With Anthem, anyone with an effective date after 3.23.10, as of 1.01.14 will be crosswalked to an ACA compliant plan.
The good news? Even though this client is being auto crosswalked to an ACA compliant plan, you the agent will retain your existing commission level.
So basically, those of us with existing blocks of IFP, this is good news!!
The good news? Even though this client is being auto crosswalked to an ACA compliant plan, you the agent will retain your existing commission level.
So basically, those of us with existing blocks of IFP, this is good news!!
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Except its not on the new premium, it's the comp on the old premium. Still good news but not a giant windfall
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Thanks for the background on how this is going to work in CA, Quotebroker. Sounds like 3 distinct compensation systems will be running concurrently. In this MLR environment, Anthem and the brokers would be better off if they cancelled two of those systems and boosted the commissions in the remaining one. 10% of premium, level year-to-year would be doable, vs 3 sets of commission related overheads.
ac
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We'd kill for 10%, as it would represent a significant raise.
On the oldest block, we'll make 10%.
On the middle block, it's 6% at the top for renewals
On the newest block, they're saying 18PMPM works out to about 9% FYC based on their projections of where most will buy, but I don't buy it. 12PMPM renewal works out to about 6% at their projections, but again I think the average base premium they're using is bogus.
Watch how slowly (if at all!) PMPM goes up in relation to premiums in years 2015 and beyond.
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Indeed you have to be careful with a carrier's representation of how your commission will end up being the same as it was before. Today, I received a new commission schedule from a carrier that is going to 4% level (down from 10% street rate). It's 2% for bronze plan, and 4% for all other tiers. Their example was that a male age 29 with a current premium of $79 nets the agent $7.90 at 10%, and that same male age 29 with an ACA premium of $198.95 nets the agent $7.96 at 4%. But, the category receiving the greatest rate spikes are young males. Run that same scenario for a female age 45, or a male age 55, and you can see quite a difference.
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Agreed. Blue Shield tells us most families they contacted valued their coverage and wanted to increase beyond basic bronze and silver plans. Anthem says their market research says most families will shy away from gold and platinum. Both use said research to justify their commission schedules.
