Coventry Commission in Georgia

[sman]

I'm sure some have already gotten the news. Coventry's new commission structure for individual health insurance beginning February 1, 2011 will be 10% first year and 8% renewal.

While still a reduction over current levels, not near as bad as many other carriers.

 

[pahealthquotes]

still waiting for Health America/Coventry to release the commission schedule for PA. I would expect it to be similar to what you just posted.

 

[YouGotMyMoney]

I'm sure some have already gotten the news. Coventry's new commission structure for individual health insurance beginning February 1, 2011 will be 10% first year and 8% renewal.

While still a reduction over current levels, not near as bad as many other carriers.

And that comes with a 24 mo advance?

 

[AndreaSti]

Keep in mind Coventry is also going to get your current block, so if you are getting 15 or 20%, whichever contract you have, they are going to drop those to 10/8 immediately (not on renewal like some), which if you have a lot of policies with them, means an immediate drop in your commission statement. For us that means one layoff because this is being combined with the BCBS cuts. The employees we have left will be getting a pay cut. Breaks my heart but I can't keep the doors open if I don't do it.

 

[sman]

Not quite accurate. Those cases that are less than 12 months old should get the old first year commission until renewal. Section 1.3 of the new contract states:

1.3 - “Renewal Policy” shall mean a policy (whether individual or family Members):

(ii) which has been active in the Individual Product for twelve (12) or more months.

I read this to mean the 8% will take place once the policy is 12 months old.

Additionally, they will be paying standard commission rates on the guarantee issue cases (the commission will be based on the base rate and not the marked up rate).

Don't get me wrong, I'm as upset as the next guy, but not nearly as upset with Coventry as I am with Aetna.

Keep in mind Coventry is also going to get your current block, so if you are getting 15 or 20%, whichever contract you have, they are going to drop those to 10/8 immediately (not on renewal like some), which if you have a lot of policies with them, means an immediate drop in your commission statement. For us that means one layoff because this is being combined with the BCBS cuts. The employees we have left will be getting a pay cut. Breaks my heart but I can't keep the doors open if I don't do it.

 

[AndreaSti]

Not quite accurate. Those cases that are less than 12 months old should get the old first year commission until renewal. Section 1.3 of the new contract states:

1.3 - “Renewal Policy” shall mean a policy (whether individual or family Members):

(ii) which has been active in the Individual Product for twelve (12) or more months.

I read this to mean the 8% will take place once the policy is 12 months old.

Additionally, they will be paying standard commission rates on the guarantee issue cases (the commission will be based on the base rate and not the marked up rate).

Don't get me wrong, I'm as upset as the next guy, but not nearly as upset with Coventry as I am with Aetna.

Aetna - the landing place of all our unhealthy older clients. Takes 2 months to underwrite, then a 90% rate up. Then we get 3% on the base. Yeah I like them too.

As for Coventry I was told by one of their employees (this was a year ago so it may have improved with all their rate increases) that their MLR was hovering around 54(!), and their hospitals were wanting to renegotiate their contracts, which we all know whats going on there. I just wonder about their future commitment to the ind market in GA.

 

[medx]

I'm sure some have already gotten the news. Coventry's new commission structure for individual health insurance beginning February 1, 2011 will be 10% first year and 8% renewal.

While still a reduction over current levels, not near as bad as many other carriers.

True, Could be a lot worse

Medicare Supplemental