Your Client Relationship Will Change Next Year

[bill3173]

Even if the Commission on Health is excluded from the MLR, we can fully expect that commissions will be disclosed to the client.

They may even give them the opportunity to opt out of paying a commission and go straight to the carrier, after you've worked with them reviewing plans.

If groups have the same option, it will be brutal. There are a lot that would pay for an agent, but then there are a lot that will exploit you.

 

[669comche]

In the UK, all insurance commissions are disclosed to the prospect. In fact they have to sign the illustration that shows what the commissions will be.

The problem that they have there is that it shows the TOTAL commission. So, for example, a life commission is paid as follows in the UK:

If I sell a £50 a month policy it pays at 200% of the annual premium in commission, £1200 TO THE BROKERAGE/AGENCY.

The agent may only be getting 50% of that. So the selling agent knows EXACTLY what their upline is getting and this is what they have to get signed.

It does not seem to cause any sales to be lost. Just another piece of paper to be signed.

(by the way, don't be thinking that its great commission. There is a FOUR YEAR clawback on that sale!)

 

[TXINSURANCE]

What's a clawback? Chargeback?

 

[somarco]

ERISA plans require disclosure of commissions and have for years. When I worked with ERISA plans it was never an issue. I don't recall ever losing a case over compensation disclosure.

 

[669comche]

What's a clawback? Chargeback?

Clawback is the UK equivalent of a chargeback.

 

[ksigmtsu]

I've disclosed my commission to clients ever since I started working, and explained that the carrier is not allowed to charge them any less through me than they can direct. I'm not sure what will change, unless the carriers try to make the clients pay me directly.
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Forcing disclosure and allowing opting out of commission would be brutal, unethical, and wrong on a lot of levels.

 

[Crabcake Johnny]

None of my clients could care less about my compensation. First of all, they value my services. Secondly, removing me wouldn't lower their premiums.

 

[bill3173]

Yes, I understand about ERISA, and client acknowledgements, etc., etc, etc. However, we are facing something a little different.

The Insurance companies have been gay bashed so badly and the payouts to their execs, et al. I'm not saying that it's going to happen, but what if they exclude the agent commissions from the MLR, but turn around and give the client the option of acknowledging agent assistance or simply going direct at the time of application and saving $$.

On our State Plan, I can assist a client, but they can choose to include me or not. Nobody has ever denied me, but it's only $200 and it's clear that it's a payment to me that doesn't affect their premium.

 

[YouGotMyMoney]

On our State Plan, I can assist a client, but they can choose to include me or not. Nobody has ever denied me, but it's only $200 and it's clear that it's a payment to me that doesn't affect their premium.

Only $200?

Your getting ripped off, I get $300 from Inclusive Health.

 

[ksigmtsu]

They gave us 0$ here before they closed the plan on Oct 15. I signed up 16 people last year.