Aetna Cutting Commissions

[jbage007]

Surely, if the insurance commissioner of Kentucky wants your keen insight into the insurance industry, he'll reach out to you. Just don't hold your breath. Somehow I believe the commissioner has access to much sharper, much more well-educated minds than yours.

 

[AllenChicago]

No link but I heard from the same source that told me about UHC that Aetna is talking about cutting commissions to $0 as well. Still hoping it's not true.

Your source is 1 for 3 Jlallgier. Aetna has yet to cut, and BCBS-Alabama doesn't contract brokers.

If you learn more about AETNA however, let us know.

 

[Yagents]

Your source is 1 for 3 Jlallgier. Aetna has yet to cut, and BCBS-Alabama doesn't contract brokers.

If you learn more about AETNA however, let us know.

Aetna sent out email two weeks ago. No commissions for se.p

 

[AllenChicago]

Aetna sent out email two weeks ago. No commissions for se.p

Holy Crap! What national health insurance carrier is paying commissions outside of Open Enrollment?

I must have missed the Aetna zapping commissions thread.

 

[Sherota1]

Carriers can change commissions in any direction they want as long as they give proper notice per the contract.

This part is not totally true even though I use to think so. One company violated this rule twice unless I have the only contract that states they must give you 30 days notice.

Carriers can breach a contract and fry the small fish without consequences

I maybe wrong but I feel I'm right on this one.

 

[Chazm]

This part is not totally true even though I use to think so. One company violated this rule twice unless I have the only contract that states they must give you 30 days notice. Carriers can breach a contract and fry the small fish without consequences I maybe wrong but I feel I'm right on this one.

I'm reading what you are saying and what you quoted as exactly the same thing. As long as they give you proper notice. Which has been done

 

[Sherota1]

So giving notice Nov 16th of a change that took effect Nov 17th to me is a 1 day not 30 or more day notice.
The notice for the January 1st 0% commission change was given December 4th a 28 day notice which is also less than 30 or more days.

If I'm counting wrong or if there is some other formula they use such as one hour equals a day I'd like to know. Not trying to sound ignorant but I think I'm the only one who feels that proper notice wasn't given. If someone can explain how they calculate the 30 or more days notice I'm all ears.

Updated: I stand corrected. There was an amendment to my agent contracts sent out with an updated commission schedule. Instead of needing to give 30 days as stated in the original contract it now says quote "In Our sole discretion, We may amend the Commission Schedule(s) at any time without advance notice by posting new ones on the broker portal. We may apply those changes for any new business and/or existing business issued, with effective date(s), prior to or after such amendment, and We may do so with or without taking any similar action(s) with regard to any other broker" end quote.

Per my original contract they were in violation but with the amendment all of the eggs are in their basket. So Chazm you are right. I guess they feel they did us a favor by agreeing to not change commissions to business submitted prior to the notice. But according to the amendment even that business is not safe since they can revoke compensation at anytime with the stroke of a pen. So I now see why they passed AB-1163.

So glad I'm still running my original business where I make the rules and I get to set what my time is worth. I was encouraged to drop it and go full time with insurance. I can't give my whole life to something I don't fully trust and trust even less now.

 

[somarco]

Commission cuts are only one way to discourage agent business.

They can also eliminate the online (instant) quote and replace it with "ask us for rates), eliminate the e-app and replace with paper app.

You are tilting at windmills by thinking the carriers need agents.

No they don't. Further more, they don't want them because the smart ones do more damage to the loss ratio than any of the navigators that simply cram people in the plan with the lowest premium.

I wonder how many navigators sold plans higher than bronze or silver. My guess is almost none.

So now that most of the gold and platinum plans are gone part of the problem is eliminated.

 

[Sherota1]

You are tilting at windmills by thinking the carriers need agents.

No they don't. Further more, they don't want them because the smart ones do more damage to the loss ratio than any of the navigators that simply cram people in the plan with the lowest premium.

Somarco I totally agree. I’ve felt dispensable from the first empty promises I was told when I started in the business. To the 7 appointments I ran on my first weekend in from my top 25 list only to find out the business was not mine. To the leads I was promised and told I was not ready for. To being terminated for non-production and given the excuse we cannot afford to pay appointment fees for non-producing agents where other companies give you the option to pay it and retain access to your book of business.

In 2012 I learned this is an every man for himself business. With the help of a wonderful agent who is a member of the forum I learned to find a niche market. Take what you can get out of this business and learn to shift left and right as needed. Trust no company. It’s a one sided business in their favor not ours. So what’s going on in the business is not surprising but to be expected not just with ACA business but with all lines of insurance. So go where the gravy is and when it dries up move on.

 

[Yagents]

Only in ACA America can a loss of 3-4% be a "win" for an insurer, stock up, agents out.

Aetna says individual exchange business improved; shares gain | Reuters