Coventry of Ga- Broker Pass Through Option
- Thread starter toddoxley
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Spoke to our Aetna rep in GA today, ( since they own Coventry) and he stated that Aetna will be going to the " Broker Pass through Option" next year for all lines of coverage ie: group and indy...
My concern with this is that the monthly employer invoice for health insurance will have listed our commission and the carrier will accept the monthly premium for just the medical and not the total which includes our commission. In this scenario we would have to collect this from our employer client if they decided to not pay the agent comp for whatever reason..
My question for Ga agent is how has this option been working for you and for those not familiar what are your thoughts ??
My concern with this is that the monthly employer invoice for health insurance will have listed our commission and the carrier will accept the monthly premium for just the medical and not the total which includes our commission. In this scenario we would have to collect this from our employer client if they decided to not pay the agent comp for whatever reason..
My question for Ga agent is how has this option been working for you and for those not familiar what are your thoughts ??
I believe Aetna started this for all group a few years ago. That's when their group biz pretty much dropped off the face of the earth.
So now they are doing this for everything, including IFP?
Sounds like they don't want broker activity. No real loss here.
So now they are doing this for everything, including IFP?
Sounds like they don't want broker activity. No real loss here.
My understanding (at least for Coventry this past year or two) is that you have the option of doing either or. If you choose the pass through, it isn't calculated in the MLR. If you choose the commission option it is.
I would continue to use the commission option as long as it's still available.
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So , per an email we received today from the Coventry account rep and I confirmed this with the Aetna rep beginning with renewals in October if the group does not switch to a ACA plan than the commission is changed to the " broker pass through" model.
Our Aetna rep also mentioned that base on a company wide webinar recently with Aetna CEO Bertolini the agent distribution model cost Aetna 2 billion per year and they can not sustain this. Our rep stated that both group and indy health plans will operate under this model. However, when I asked the rep why the email stated that if a group changed to a ACA plan that the old commission would remain, he did not know why ???????
Funny how we agents cost Aetna so much money after we place business with them.......
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Right, it is a cost Aetna complains about after they have received the business, you hear nothing on the front end about how costly this new business is going to be for them.
My understanding is that carriers come up with all cost for a particular plan then add agents commission to that number. So really the consumer bears the cost until this wonderful Obamacrap came along and gave us the wonderful MLR...
Lets hope this Aetna guideline does not catch on to the other carriers.
Agents need not to reward this by placing business with Coventry or Aetna.
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Interesting considering my Coventry IFP rep told me a few weeks ago that they wouldn't be renewing pre ACA plans. How in the world do they implement broker pass through commission on plans that are no longer around?
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From: Barnett, Stacy [mailto:[email protected]]
Sent: Friday, August 15, 2014 3:18 PM
To: Barnett, Stacy
Subject: Broker Pass-Through *please respond by 08/25/14*
Importance: High
As you know, we have previously addressed putting the broker compensation outside the medical premium by introducing the broker pass-through. This has been a popular option.
With that in mind, I would like to tell you about a particularly exciting change that will take place beginning with October small group renewals:
Effective 10/01/2014, all Coventry KWYH renewals will be generated with Broker Pass-Through, not standard commissions. If a group decides to make a plan change to a current ACA plan option, compensation will revert back to the current commission schedule.
The deadline to advise me of the standard percentage compensation that you would like applied to all of your KYWH renewals is August 25, 2014. If I do not hear from you by this date, the default percentage will be 6%.
The group specific broker pass-through paperwork will be sent along via a separate email. Please be looking for it.
If you have questions, do not hesitate to reach out regarding this option, and other lines of coverage to increase your overall compensation with Coventry. I hope that you are as excited as I am to offer you the ability to determine your own compensation!
This is the email I received earlier today re: the broker pass through... I called our Aetna / Coventry group representative and he stated that this was the direction that Aetna was heading in both group ( now) and indy( later next year). When I asked him about the wording in the email that stated that this " broker pass through" would only be applicable to Non-ACA plans he responded with the company wide employee webinar with Bertolini that stated that the current distribution model with agents cost Aetna 2 billion a year and they can not sustain this with the new margins brought on by Obamacrap and MLR.
