Interesting View from My Carrier Rep on Exchange

insurehound

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I was speaking with my carrier rep. this morning regarding some questions our agency had in regards to the Exchanges:

1.) GF commissions will continue. Carrier will not cancel contracts and stop paying commissions.

2.) If someone goes to the Exchange, you better be on the app. or kiss it goodbye.

3.) The Exchange plans will have very limited networks. It will be used for people who need "free money".

4.) Higher Net Worth clients will want to stay outside of the Exchange for bigger and richer networks.

5.) Commission number that was mentioned was anywhere between $100 to $50 per month, per member.

Who knows what the real story is. I guess we'll know soon enough. If this is the first step to single payer, then all of this is just a stop-gap measure regardless.
 
$100-$50 per member per month does seem as high. I was guessing we could see $200-300 1st year then half that as renewals. I am was thinking it would be like MA, but not as high.
 
Would KILL for $100 PMPM of non-underwritten business that you are mandated to have.

If you don't mind, which carrier did you speak to? I understand if you'd prefer not to reveal.
 
my guess would be one time fees for placing the business. These are supposed to be subsidized accounts. Remember were only here for charity work.
 
Unless rates are going to go up even more, and I mean dramatically, $100 a month doesn't fit into the 20% that they have for admin expenses, unless its a limited time thing.

Now, I don't doubt rates will go up, but this doesn't even make sense.

$50-$100 per year I would believe. Fits into existing models pretty well.

Dan
 
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