Cigna Cuts IFP Comp to 0% 4th Quarter Biz
- Thread starter Dave020
- Start date
I averaged 4.9% on my Aetna 1st year enrollments this year with the PMPM commission structure; the renewal rate (in Florida) is about 70% of the FYI so that would mean 3.5% on renewals.
If I knew they would keep those levels for the long term it would be acceptable to me, they are lower than that in Georgia ($15/$8) and I'd guess that is the direction for next year in other states.
When you factor in annual rate increases it's easy to see that the PMPM structure really leads to low commission rates, $15 FYC in 5 years could easily be less than 3%.
- 1,227
Isn't that special? A____ will pay. It is as if this is a bonus now.
- 8,448
What's up with not spelling out the name AETNA? Will lightning strike?
- 8,448
February 10, 2016
Cigna's Chief Financial Officer says...
""We knew these early years on the exchange would be volatile," Cigna Chief Financial Officer Tom McCarthy told stock analysts at an investor conference in New York Wednesday.
"We expected a plan where we would lose money these past few years, and by golly, we've delivered on that plan," he said with a chuckle.
"We expect to lose money again in 2016," Smith said. "That, to me, does not undermine the long-term attractiveness of the market. I do expect that over time, that market will evolve to be attractive for the industry generally, and for Cigna in particular.""
Full Story: Cigna CFO: Obamacare will be good for insurers in the long run - Hartford Courant
We don't have CIGNA IFP in Illinois. Did the company pay commissions for OEP enrollments, and are they paying SEP commissions? After all, they expected to lose money in these "early years". Compensation to agents was already factored in to those expected losses...no?
Cigna's Chief Financial Officer says...
""We knew these early years on the exchange would be volatile," Cigna Chief Financial Officer Tom McCarthy told stock analysts at an investor conference in New York Wednesday.
"We expected a plan where we would lose money these past few years, and by golly, we've delivered on that plan," he said with a chuckle.
"We expect to lose money again in 2016," Smith said. "That, to me, does not undermine the long-term attractiveness of the market. I do expect that over time, that market will evolve to be attractive for the industry generally, and for Cigna in particular.""
Full Story: Cigna CFO: Obamacare will be good for insurers in the long run - Hartford Courant
We don't have CIGNA IFP in Illinois. Did the company pay commissions for OEP enrollments, and are they paying SEP commissions? After all, they expected to lose money in these "early years". Compensation to agents was already factored in to those expected losses...no?
- 5,056
Wasn't there news about Cigna HealthSpring being sanctioned or spanked by CMS? Or was it another company?
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There are more ways for Cigna not to pay than to pay: they are my least favorite carrier. They squeal like a pig to let go of a dime of agent's commissions.
- 4,707
yes, CIGNA spanked and sent to the corner by CMS.
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