The golden age of Medicare is over . Humana stock plunging.

[InsuranceGuy29]

In the end shits hitting the fan . Maximum commissions are $610 but CO’s can give less . What the Humana articles today sound like there not pricing products to be unprofitable and if they lose business so be it . They days of buying business are over . But United never bought business and stayed disciplined.

Cutting commission would be suicide for carriers, because brokers will just stop completely writing them. Any even remotely decent CEO understands that. Much easier ways to save money that don't affect the brokers. The brokers are your lifeblood.

A few years ago, Cigna introduced a few $0 commission PDP plans. What they found is, not only did brokers not write those $0 commission plans, brokers also completely stopped writing ANY Cigna plans. The commission later magically returned after the findings.

Brokers control your entire business, and in the overall scheme of things, they are an immensely cheap benefit to have. It's not even a remotely good idea to screw with them.

United Healthcare understands this well. Even outside the Medicare realm, they take care of the brokers well, monetarily. As a result, who is #1 in the insurance business? United Healthcare. The benefits all being very similar, brokers will write the company that takes care of them best over the other companies.

Rule #1 for any insurance CEO......Do NOT screw with the brokers' pay, because they will make YOU pay.

 

[hockeyday]

I grew my Humana book by over 100 aep event though products were not good . I keyed on the $100 back part b people wanted . I also got a ton of referrals. The referrals had Humana so I had to sell Humana . I’m not talking about the slashing of benefits coming up as much as possible copays rising big and possibly even premiums being added on some plans . If your specialist copay goes from $20 to $60 it’s a problem . I’ll just say I see myself this aep spending 60% plus of my time with existing clients possibly moving many to other carriers if the spread between carriers is big . Now we know why Humana axed Reese . Even before all this new cms stuff getting rid of overrides no doubt humana was going to cut marketing big to agencys .

That dude got millions lots of millions, he is probably glad to go away

 

[axeman462]

Yawn, happens every few years. What's next?

 

[Russ]

What's next is to enjoy the hefty commissions each month from MAPD companies.

I think Humana had this same issue after last AEP. Lower then expected sales.

 

[Yagents]

You continue to argue against statements that I didn't make.

Is there anybody here that you haven't argued with yet?

Settle down, take a pill....... here's an article for you and everyone to read:

[EXTERNAL LINK] - Medicare Advantage May Face Big Plan Cuts, Price Hikes in 2025 | ThinkAdvisor

 

[axeman462]

You continue to argue against statements that I didn't make. I never said benefits have never changed. I stated quite specifically that companies had cut benefits and raised copays this year. I said chaos is a good thing.
I never implied that the changes would be bad for us, only that there will likely be a lot of changes and, therefore a lot of movement between plans this AEP. Definitely more shopping.

Which is why DonP's point is valid. We will spend a lot more time playing defense this AEP. This isn't a "sky is falling" statement (though his thread title is) but simply a reasonable assessment of possible business conditions that one should be preparing for so that you can both retain your book and take advantage of what will likely be a lot more people shopping their plans next AEP.

This coming AEP was always going to be a busy AEP with the continuing changes to Part D. It will be no different than this past season.

Plus as your book grows, unless you are the kind of agent that values new customers more than your current customers, it is only natural to spend more time with your current customers than new customers

 

[axeman462]

Oh… so now it was always going happen… always great to be able to change your position when it suits you.

And I don’t need you to tell me how to grow a book. The point is to continue to grow regardless. Humana issued annual guidance. That means they plan because while already huge they want to continue to grow. It’s how business works.

when did I say that this coming AEP wasn't going to be a busy one?

And when did I tell you how to grow a book?

 

[axeman462]

You literally just said it will be no different than this past AEP. You said its simply a continuation of changes to Part D. When Humana guidance directly contradicts that. So add this to the Part D changes, Cigna shopping for a buyer, elimination of marketing money and FMO’s. No, this isn’t going to be just like last year.

actually, what I said was "yawn, happens every few years. whats next?"
in reference to an insurance company have bad earnings, and giving bad guidance...which is true. And in my experience, it has little effect on the market.

As for this past AEP, maybe this past AEP wasn't busy for you, but it was for me. a lot of Part D plans blew up this past season.
I had to move a large chuck of my book, both Part D, and MAPD, and I also got a ton of referrals because of it as a result.

I don't believe that Humana's guidance is gonna have any big effect on the market going into 25'. The Part D changes that are coming down the pike will continue to though... although that might be part of the reason they gave bad guidance, I didn't listen to the CC.

 

[InsuranceGuy29]

 

[axeman462]

*Actually* you said (and I’m copying and pasting here)

“This coming AEP was always going to be a busy AEP with the continuing changes to Part D. It will be no different than this past season.”

Now, nowhere did I say Humana alone was going to make a big impact. I said (again I’m copying and pasting here):

“ So add this to the Part D changes, Cigna shopping for a buyer, elimination of marketing money and FMO’s”

Thank you for proving my point.