New Commsion Rate Drop

[SamIam]

Here is the email I recieved

Subj: Pacificare/Golden Rule sales in CA

Effective immediately, GR/UHC/Pacificare has reduced commissions for the sale of individual major medical in the state of CA to 4% to GAs.
.
The actions taken for the state of CA does not portend to what may be forthcoming for other states.

Please disseminate immediately to your downline.

 

[Dave020]

Is that FYC, renewals, or both?

 

[669comche]

At $160 average cost to acquire a client most will be out of business with health....

I have never sold in CA - what is the current street level commission for agents selling UHC in CA???

 

[Crabcake Johnny]

Two questions:

1) What is the current compensation
2) Why the drop in comp when MLR's haven't been calculated

 

[Dave020]

I have never sold in CA - what is the current street level commission for agents selling UHC in CA???

UHC does not offer individual products in CA. They run it through PacifiCare (which they bought a few years ago).

Current street with PacifiCare is 20/10 like most of the rest. BTW current street Cigna IFP CA is 20/5.

 

[SamIam]

Dave you are correct. As far why the drop in comp if they haven't calculated the MLR, I have no I just received the email. I haven't sold in California in two years. I just thought I pass on the email I recieved.

 

[Crabcake Johnny]

Unless they are the only carrier in the country that has received communication from HHS as to how to calculate the MLR's this has no logic to it.

 

[Tampa Bay Rep]

Effective immediately, GR/UHC/Pacificare has reduced commissions for the sale of individual major medical in the state of CA to 4% to GAs.

Wow, what a drop. If 4% is the GAs commission level, the commission level to an agent would probably be 2%. No agent can make a living at those levels.

 

[TXINSURANCE]

Anyone else receive this email? Can someone post the actual email. This seems unlikely and will certainly not be the trend of other carriers at that low of a level.

 

[GreenSky]

Per your request.....

View attachment PacifiCare.pdf

Rick