- 287
Any national carriers release their 2016 comp yet?
Our local Blues just released their 2016 Individual Comp. It used to be 8% first year / 2% on renewals. Now it's:
New Sales Commission
$15 per contract per month until renewal
Renewal Commission
2% of Total Billed Premium by Month
They basically said they had to cut comp because:
- They are experiencing cost increases that cannot be sustained. For their individual market members, they are paying more for healthcare, taxes and expenses than they are getting through premium payments, and these plans are operating at a significant loss.
- Rising costs of medical care driving up the cost of health insurance. Rates must increase to cover healthcare services.
- People need more healthcare than expected. Premium price is directly tied to how much it costs to cover healthcare for everyone in the risk pool.
- In our opinion, the healthcare reform law lacks teeth to do what it was intended to do. The law was supposed to require all people (with certain exceptions) to sign up for health insurance, so there would be a mix of health conditions in the risk pool that balanced out costs. Instead, the law doesn’t do enough to get healthier people to sign up, penalties are not strictly enforced if people don’t have health insurance, and no documentation is required for Special Enrollment Periods. This creates an environment where people can have healthcare on demand –without paying penalties or being held accountable.
- Taxes and fees have more than doubled under the law, and insurers have to factor in these increased costs when setting rates.
----------
Here's the other carriers comp in my market:
Humana 3% year 1, 3% renewal
UnitedHealthOne 7% year 1, 3% renewal
Our local Blues just released their 2016 Individual Comp. It used to be 8% first year / 2% on renewals. Now it's:
New Sales Commission
$15 per contract per month until renewal
Renewal Commission
2% of Total Billed Premium by Month
They basically said they had to cut comp because:
- They are experiencing cost increases that cannot be sustained. For their individual market members, they are paying more for healthcare, taxes and expenses than they are getting through premium payments, and these plans are operating at a significant loss.
- Rising costs of medical care driving up the cost of health insurance. Rates must increase to cover healthcare services.
- People need more healthcare than expected. Premium price is directly tied to how much it costs to cover healthcare for everyone in the risk pool.
- In our opinion, the healthcare reform law lacks teeth to do what it was intended to do. The law was supposed to require all people (with certain exceptions) to sign up for health insurance, so there would be a mix of health conditions in the risk pool that balanced out costs. Instead, the law doesn’t do enough to get healthier people to sign up, penalties are not strictly enforced if people don’t have health insurance, and no documentation is required for Special Enrollment Periods. This creates an environment where people can have healthcare on demand –without paying penalties or being held accountable.
- Taxes and fees have more than doubled under the law, and insurers have to factor in these increased costs when setting rates.
----------
Here's the other carriers comp in my market:
Humana 3% year 1, 3% renewal
UnitedHealthOne 7% year 1, 3% renewal
