4% for IFP... is It Enough

[CHUMPS FROM OXFORD]

"Currently, I hardly ever leave my office to make a sale. I either do the app through the mail, or, I steer the applicant to my web site where they apply."

I changed to that format about five years ago. In fact now, I don't call anybody unless they call me first. I don't recommend you go that far, but under the right circumstances, it can be done.

 

[TonyC]

Chumps....better put up some you tube vids. Instructing applicants on how to fill out an online app. be prepared for Numerous dumb questions...(just saying)

 

[bill3173]

4% is not ideal, but brokers have been making ends meet with those kind of numbers for quite a while in other states.

I've heard they don't pay much commish in NY, but I have an agent/friend there that I send a health client to occasionally, and he always seems excited to have it. He jumps all over it, like he's been waiting for my call. It's a side biz for him, his main focus is life, but he must be making money on the health.

 

[FLM2]

The bigger issue for me regarding commissions (at least based on the Humana schedule) is that renewals will be 2% in year 4 and beyond.

If ACA plans are anything like Medicare there will be far less plan switching year to year and 2% long term isn't very good. It will make flipping clients a priority and that isn't something I do unless premiums go up significantly.

If other companies have similar structures it shows me that the agent is going to eventually be out of the equation completely, there is no reason to service clients down the road for 2%.

 

[cadylou]

The agent may very well be out of the equation completely over time . . . . when this whole business first started they were comparing it to the travel industry. How many full time travel agents are left? . . . .

 

[YouGotMyMoney]

I've heard they don't pay much commish in NY, but I have an agent/friend there that I send a health client to occasionally, and he always seems excited to have it. He jumps all over it, like he's been waiting for my call. It's a side biz for him, his main focus is life, but he must be making money on the health.

I remember working in a discount card call center probably 5-6 years ago, that had a licensed agent working there to funnel all their short-term medical plans, so they got licensed in New York and offered this HMO plan called Atlantis that was only available in the five boroughs. The commission back then was probably 2 to 4%, on premiums that averaged at least $1000 a month. I don't recall many folks signing up, most of them would end up signing for some type of discount plan, if they had no other recourse for major medical insurance.

If you can get 4% on the total premium, including the subsidy, you may be able to work a business plan out. But 4% on non-exchange business? That ain't happenin, no way no how.

 

[stuy119]

The agent may very well be out of the equation completely over time . . . . when this whole business first started they were comparing it to the travel industry. How many full time travel agents are left? . . . .

More than you know about. I've worked with at least 5 in the past 3 years.

 

[bill3173]

they got licensed in New York and offered this HMO plan called Atlantis that was only available in the five boroughs. The commission back then was probably 2 to 4%, on premiums that averaged at least $1000 a month.

Sounds about right. The premiums were ~$900+ and he indicated he was getting around 3-4%, which with him, I usually have to add at least 30% to what he says he's making. I don't know NY, so that may not be possible there.

 

[heavenly]

New Commissions for Blue Shield Individual and Family Plans

We promised that as soon as the new commission rate was set for our Individual and Family plans, we would let you know. Today, we're ready to announce it.

The new Blue Shield of California and Blue Shield of California Life & Health Insurance Company ("Blue Shield") commission for all Individual and Family plans, which takes effect on January 1st, is as follows:
Contract year 1
Commission: 4%
Renewal year
Commission: 4%
In the coming weeks we'll post the new Blue Shield commission schedule on Producer Connection. It will include the commissions and related details, and we'll notify you when it's ready.

Since the passage of the Affordable Care Act and new regulations, such as the Medical Loss Ratio, we've been determined to protect the critical role you play. With guaranteed acceptance and millions of new customers entering the market, your role is more important than ever in helping consumers understand their options.

Together, we're preparing for a new healthcare market, and next year we make history. We look forward to doing it together! Thank you for your business and please contact your Blue Shield sales representative with questions.

 

[Quotebroker]

Anthem CA announces 18 PMPM