My United Healthcare Rep was pretty open with me

[FallerWifey]

This is what I never understood. No agent Ive ever known flips there book unless they have to . There's zero financial reason and it's hell . Now all agents will move other plans if they can . So in that respect there is a ton of movement. Mr Somarco's been sheltered selling sups were rate increase 3-5% a yr and people never move . 14-30% rate increase for yrs to come will be the norm and he'll now have to flip clients to retain them . Welcome to chaos

I am probably moving more people with supplements this year than I ever have. We've had such big rate increase with Blue Shield and UHC here in my part of California, I had no choice but to move people.

So here is a question- how do you possibly balance what is right for the client with what is right for the carrier? For me, it has always been about my clients. If there is a good savings there, I will offer the client a change. If their plan only goes up by $5-$10 a month, I am not going to offer a change. How do you balance your cut off?

 

[DonP]

Don do you know what the typical charge back period for the call center loa is? Are these call center fmo gaining anything from enrollments that term before the 4th month?

It depends on the call center . Some with the $50 type low enrollment fee I believe it just has to go active . The ones that pay like $20 an hr and $125 plus an app i believe it has to hit the 4th month active. I'm getting more calls than ever from clients telling me their phone ringing off the hook

 

[DonP]

I am probably moving more people with supplements this year than I ever have. We've had such big rate increase with Blue Shield and UHC here in my part of California, I had no choice but to move people.

So here is a question- how do you possibly balance what is right for the client with what is right for the carrier? For me, it has always been about my clients. If there is a good savings there, I will offer the client a change. If their plan only goes up by $5-$10 a month, I am not going to offer a change. How do you balance your cut off?

I would never move anyone for less than $20 a month . Now if you have a client with a $250 a month premium and it goes up $50 to $75 a month then if healthy you shop it . If unhealthy I'd still advise them to stay put unless they're in Fla with $1000-$3000 moops

 

[somarco]

@LindInsure handling in house enrollments may or may not be cost effective . . . but as the process is automated it becomes less labor intensive than it was in the days of 100% paper apps.

Having direct control over the in house sales people also serves the bottom line. Sales reps are limited to selling only brand name products which usually are higher priced and have less value vs. the same plan on the open market.

As for balancing what is right for the client vs right for the carrier . . . the more you know about your prospects health makes it easier to promote one carrier over the next.

I have a mix of smaller, regional carriers to offer along with larger, national carriers. When I have someone with a rough medical history I counsel them to pay a little more to get coverage from a large carrier with 40+ years in the business vs a smaller carrier that only has 10 years in the market.

I try to write mostly healthy people, which is easier to judge when you are placing an underwritten app. If you know their med's you can also get a rough idea of your T65 and SEP prospects.

I always talk about quality, tenure in the market and access to a large number of providers . . . and I never pitch price as a priority.

Most of the time I quote one carrier and that is what they buy. Sometimes, if there is a significant premium savings with a smaller carrier I quote both carriers and explain why one is higher than the others.

 

[FallerWifey]

I would never move anyone for less than $20 a month . Now if you have a client with a $250 a month premium and it goes up $50 to $75 a month then if healthy you shop it . If unhealthy I'd still advise them to stay put unless they're in Fla with $1000-$3000 moops

I am in California, so we have the Birthday Rule. I am primarily moving people with Plan F or Plan G. My though has always been to do right by the client financially, as long as I am being honest. Most of my clients are going to want to move with a $20 increase monthly. We are a smaller area and most of my seniors are on very fixed incomes. Ex: Am I paying for my rent or my monthly premium?

In cases like this, how do you balance also doing right by the carrier?

 

[FallerWifey]

@LindInsure handling in house enrollments may or may not be cost effective . . . but as the process is automated it becomes less labor intensive than it was in the days of 100% paper apps.

Having direct control over the in house sales people also serves the bottom line. Sales reps are limited to selling only brand name products which usually are higher priced and have less value vs. the same plan on the open market.

As for balancing what is right for the client vs right for the carrier . . . the more you know about your prospects health makes it easier to promote one carrier over the next.

I have a mix of smaller, regional carriers to offer along with larger, national carriers. When I have someone with a rough medical history I counsel them to pay a little more to get coverage from a large carrier with 40+ years in the business vs a smaller carrier that only has 10 years in the market.

I try to write mostly healthy people, which is easier to judge when you are placing an underwritten app. If you know their med's you can also get a rough idea of your T65 and SEP prospects.

I always talk about quality, tenure in the market and access to a large number of providers . . . and I never pitch price as a priority.

Most of the time I quote one carrier and that is what they buy. Sometimes, if there is a significant premium savings with a smaller carrier I quote both carriers and explain why one is higher than the others.

Thank you for the info! I think where I run into hiccups is that we have Birthday Rules in California, and often our premium make decent jumps at the renewal month. If a client is going up $30-$55 a month when they hit the one year mark, they are going to want to move to a carrier that will either cost them less, or where they will pay the same as their prior premium. I definitely understand that.

Birthday rules are used heavily here, and if I don't change them, another agent will. Obviously I don't want to lose my clients, but I also don't want to be unfair to the carriers. However, it is really hard to be concerned about the carriers when I am seeing these huge increases.

Access to providers isn't an issue, since these are supps and we are looking at Medicare providers. Tenure in the market is a good selling point, but hard to sell with a big increase.

Up until this summer, I really have not had to do any underwritten apps, everyone has either come to me at 65 (or already been with me for a IFP policy) or they have searched me out to change at their birthday rule.

It was really pounded into my head by my old boss that we close the exit door- do everything for them so we don't lose them. We changed every client every birthday rule (if they wanted) and it was ALL PAPER APP. I do e-apps now. LOL

I agree partially with her strategy of closing the exit door, but that is also not a smart business model, which is why she went under. Now that I am out on my own, I don't want to make the same mistakes she did, but I also want to make sure I am not loosing clients. It's a hard balancing act.

 

[somarco]

we have Birthday Rules in California, and often our premium make decent jumps at the renewal month

BIrthday, anniversary rules definitely impact new & renewal rates . . . and often commissions as well.

If MA plans charged a premium, and were not heavily subsidized with taxpayer dollars, those premiums would be high as well.

When a client has a "free pass" to enroll in a new plan (Medigap or MA) you have to be creative and diligent to hang on to clients.

 

[FallerWifey]

BIrthday, anniversary rules definitely impact new & renewal rates . . . and often commissions as well.

If MA plans charged a premium, and were not heavily subsidized with taxpayer dollars, those premiums would be high as well.

When a client has a "free pass" to enroll in a new plan (Medigap or MA) you have to be creative and diligent to hang on to clients.

We have ONE commissionable MAPD plan in our area. LOL

I have noticed commissions dropping this year. AFLAC came in at 22% for 1st years and it has dropped to 12% this year for first years, which is a tough pill to swallow!

 

[somarco]

AFLAC came in at 22% for 1st years and it has dropped to 12% this year for first years,

AFLAC is a repeat offender. They have been in, and out, and in again, and out again . . . more times than I can count.

I never contracted with them for this reason alone.

 

[GoPokes]

I've got to push back on the idea that agents are "flipping" their books every year… there's no $$ incentive for that and no time during AEP to even attempt it…

The only reason I ever move a client is if something significant changes—like formulary updates, network issues, or major benefit shifts… otherwise, keeping clients happy where they are is better for everyone…

Sure, some agents will try to sell a different plan if they meet someone new during AEP… that's just the nature of a competitive market… but most of us aren't out here churning for the sake of it… we're building long-term relationships and doing what's best for both the client and the carrier…

Id like to agree with you, and to an extent, I do. I think you are correct about the independent agents/brokers. However, with the call centers, I believe there are incentives to flip/move. In addition to their hourly base pay, some of these agents get a per app bonus. I have seen call centers move clients multiple times through the year, from one Humana plan, to another a month or two later.

Ive seen call center agents make posts on fb groups about how they get a higher per app bonus if the sale is in the evening, to reward working late. This agent said he would sand bag his sales, and enroll them in the evenings, just to get this extra money.... which is really not hard to believe.

Id be willing to bet that UHC is exploring this possible business model, but without a certain implementation date.

The first stage of acceptance... denial... and I too want to deny this possibility.