New Commsion Rate Drop

[Dave020]

I though IFP stands for "Individual family plans"?

I must be missing something here.

I sold for AMS back in the days before Pacific care bought them. They were a nice mutual company based out of Wis.
At the time I had a nice block of small group with them and wrote a good about of individual policies.
The mergers changed all of that.

So what does IFP stand for?

What are you confused about? This commission change is for individual and family plans (IFP), not group.

PacifiCare used to sell IFP plans direct to the public in CA with reduced premium (by the agent commission amount). They also sell IFP through Costco.

And the contract is non-vested.

 

[669comche]

We have Golden Rule but never sell it - If BCBSTX did this then I would be starting to get a little nauseous...........

 

[ABC]

What are you confused about? This commission change is for individual and family plans (IFP), not group.

PacifiCare used to sell IFP plans direct to the public in CA with reduced premium (by the agent commission amount). They also sell IFP through Costco.

And the contract is non-vested.

My bad I thought you were referring to Pacificare IFP plan as some type of limited plan that only a rookie would sell.

 

[Crabcake Johnny]

I'd like to hear the justification regarding this decrease in commission. MLR's don't take effect until 1/11.

Every carrier in my state has already said that their current compensation schedule is good through December.

 

[IndividualHealthGuy]

UHC has been ahead of everyone else in their changes. I'll say one thing for them, they're not afraid to be first and make a mistake.
This could be a good thing, because if they lose a ton of biz due to this, other carriers will be wary of reducing commissions this low. The bean counters at carriers have never loved the broker side of the biz, but most of them know they are vital to the carrier's strength.

 

[AllenChicago]

I don't understand the logic for UHC reducing commissions in any market. Just two days ago, Standard and Poors raised their credit and financial rating on UHC.
Link:S&P raises UnitedHealth's outlook to 'Stable' - Forbes.com

 

[TheSalesWolf]

Pacificare hasn't been competetive in CA in years.

United HealthOne doesn't offer plans in CA.

From everything I've been told by United, we will see commissions of 10% and higher.

 

[Dave020]

My bad I thought you were referring to Pacificare IFP plan as some type of limited plan that only a rookie would sell.

Sorry. No, most veteran health agents in California have shied away from the PCare contract due to non-vesting. Most sales of PCare plans are by relatively new agents who don't know when they are getting screwed
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Pacificare hasn't been competetive in CA in years.

Yup, and they always come up with ways to sell plans around the independent producers.

United HealthOne doesn't offer plans in CA.

Yup, they have yet to introduce one single United HealthOne product to CA (nor do I believe they ever will). Ride that PCare bull 'til he drops!

From everything I've been told by United, we will see commissions of 10% and higher.

Outside CA you guys will likely have a better deal direct with UHC.

I have had friends over the years who actually worked at PCare. I was warned years ago about how much money they actually didn't have for things like claims

 

[jbage007]

As if further demonstration were necessary ( to show what bumbling idiots they are at UHC ) notice that they signed this "Pacificare" statement on American Medical Security paper.

idiots.

 

[mminsurance]

That block of business has been losing money for awhile. This has nothing to do with health reform. They haven't been competitive and agents still sell it so instead of pulling out of the state altogether they are lowering the commish to get agents to stop selling it. There is nothing to be worried about here.