Getting Screwed by AHCP

magagent · 08-21-2009, 10:20 AM

I am not a big health producer maybe 12-15 major med cases a year, I do have all of my health contracts through HCO and I would suggest getting your contracts through them.

jmarkk1 · 08-21-2009, 10:22 AM

They say I owe about $1700, even though this number seems to be "made" up. Keep in mind that my YTD 1099 numbers are not being applied to this advance balance. What's interesting is that even if I had 100% persistency rate, I'd still owe them like a $1000. (according to their figures)

magagent · 08-21-2009, 10:29 AM

Ask for some physical documentation that you owe them 1700.00. If you really have a balance you should have the documentation by the end of the day.

Bitnis · 08-21-2009, 10:40 AM

I'm new to this business. I have dropped customers before for being slow pays. One in particular was a big customer and it was unfortunate for me. After a while it causes more grief than it's worth in my opinion!!!

Companies that slow pay have an ethics problem. If Humana is slow paying their agents then they are at the bottom of the barrel as far as I'm concerned. If their accounting is accurate and on time then that is one thing. If they are purposely floating my money, screw them.

Unfortunately Humana is one of the least expensive carriers in my area. I'm with HCO and I guess I will have to determine whether or not writing Humana is something I will do.

I think going as earned is the only way to operate in this business but you've got to get things cranked up somehow and advances are one way to do that.

jmarkk1 · 08-21-2009, 10:52 AM

I have all the documentation, both the statements as well as "their" documentation. Nothing makes sense on the figures. Again, what's strange is that what I've earned, i.e. what is reported each year on 1099, isn't being applied to beginning balances. Also, there are months where the statements are flatout wrong, i.e. not showing any renewals then next month all renewals are still there.

TheSalesWolf · 10-01-2009, 11:04 AM

We're a GA. We have contracts for United HEalth, Assurant, IAC and a ton of Life Carriers. However we run our agents through HealthCHoiceONe for Humana and Aetna.

HealthChoiceOne has over 100 of our agents and their commissions seem to be paid out correctly. I've only had 1 agent with issues out of over 100 and they rectified that problem.

However they run their agents through AHCP for Aetna and possibly United HeathOne. AHCP has a major problem with their commission structure. This was something I just found out about and am EXTREMELY PISSED.

If you choose advanced commissions they pay you the advanced and then put that total in a seperate renewal payout balance. For example you sell a policy and get advanced $700. $700 goes into a renewal balance. Every month that renewal balance will get lower as long as that person stays on the book. However HERE's THE PROBLEM. Let's say you write 10 apps a month for a total of $4000. Next month that Renewal balance goes up another $4000 and then goes up again and again and again. You do not get paid renewals unless that balance reaches ZERO. So basically if you are on an advanced payout through AHCP and you do business with them YOU WILL NEVER GET RENEWAL COMMISSIONS!

Now I spoke with Amanda Hale about this and she promised it is getting rectified and their target date is the 1st of the year. However I am recommending all agents go as earned if you are with AHCP.

healthagent · 10-01-2009, 11:36 AM

The entire goal is building a book and actually receiving renewals - as well as obviously all of your 1st year commissions.

I don't recommend that any agent join an agency unless they will actually RECEIVE all 1st year commissions and all renewals obviously as long as the client is still on the books.

Do not trade getting advances for a "debt account." There are too many agencies that will advance and also give you renewals.

ScottHCO · 10-01-2009, 01:30 PM

What's great about going with Health Choice One is that agents are given a CHOICE. The carriers in question above are Aetna and Golden Rule. Agents can chooses between TWO versions of each contract. They can take either...

A. The "AHCP" contracts for the weekly advances, lead credits and annual trip... Or,

B. The "HCO Direct" contracts and receive ALL commission directly from the insurance company...PLUS, NO Production Requirements.

Call me with questions. :o)