Charging Fees for SEP Business?

[AIABROKER]

Since many carriers have eliminated commissions on SEP business, how do you justify helping clients apply for free? I get many referrals to people who are coming off COBRA or have other SEP situations and call me for help on enrolling either on-exchange or off. Since I'm not getting paid or maybe 1% if I put them with Blue Cross, I'm trying to figure out how I can get paid for my time to help these people. I don't want to blow off the referrals because it could get back to the referrer and then they think I can't help them in open enrollment.

So I'm wondering if I can charge a consulting fee of some sort, maybe $50. This would pay for an hour of time in researching different plans, making sure the clients providers are in-network and preparing quotes with several companies.

Are there any special licenses or certification I would need? Would this be a violation of state insurance license policy?

 

[kgmom219]

Since many carriers have eliminated commissions on SEP business, how do you justify helping clients apply for free? I get many referrals to people who are coming off COBRA or have other SEP situations and call me for help on enrolling either on-exchange or off. Since I'm not getting paid or maybe 1% if I put them with Blue Cross, I'm trying to figure out how I can get paid for my time to help these people. I don't want to blow off the referrals because it could get back to the referrer and then they think I can't help them in open enrollment.

So I'm wondering if I can charge a consulting fee of some sort, maybe $50. This would pay for an hour of time in researching different plans, making sure the clients providers are in-network and preparing quotes with several companies.

Are there any special licenses or certification I would need? Would this be a violation of state insurance license policy?

What state are you in?

Here's my 2 cents...if its a referral, I just write it. We aren't that busy annd eventually you will get paid on them. Its 30 minutes. Don't forget to thank the referral source. Some carriers I get paid, some I don't.

Last year, BCBSTX didn't pay SEPs. I wrote 6. I am now getting paid on 5, because they went group, STM, Med Supp, whatever.

Are you really that busy where you can't spend 30 minutes to get a little good will?

 

[AIABROKER]

What state are you in?

Here's my 2 cents...if its a referral, I just write it. We aren't that busy annd eventually you will get paid on them. Its 30 minutes. Don't forget to thank the referral source. Some carriers I get paid, some I don't.

Last year, BCBSTX didn't pay SEPs. I wrote 6. I am now getting paid on 5, because they went group, STM, Med Supp, whatever.

Are you really that busy where you can't spend 30 minutes to get a little good will?

I'm in Michigan.

If I write a policy off-exchange then yes, it is only about 30 minutes. But if they go on exchange with a subsidy, it does take longer to help them apply. I guess I could just give them quotes and then instruct them on how to apply but I like to go a step further and take care of everything for them.

It just really bothers me that the insurance companies pulled commissions on this business. It's not like these people applying during SEP are higher risk than those applying during open enrollment.

 

[LostDollar]

http://www.insurance-forums.net/for...will-you-write-plans-0-commission-t84773.html

there is a thread which has some discussion of this.

if you are watchig over a period of months you will see this come up as a business issue for an agent. Folks seem to have strong opinions on both sides of the issue.

i think kgmom represents thr "write it" view pretty well, it sounds like your own thoughts bring the other side to you. Ultimately you will have to make the decision that best fts you.

Not an agent, cannot advise you on how fees may get you crossways with your ins dept.

 

[FLM2]

What state are you in?

Here's my 2 cents...if its a referral, I just write it. We aren't that busy annd eventually you will get paid on them. Its 30 minutes. Don't forget to thank the referral source. Some carriers I get paid, some I don't.

Last year, BCBSTX didn't pay SEPs. I wrote 6. I am now getting paid on 5, because they went group, STM, Med Supp, whatever.

Are you really that busy where you can't spend 30 minutes to get a little good will?

It's funny that we agree on so many things about our businesses with the exception of this-I won't work for free although it's not much of an issue in Florida since Florida Blue pays commissions for SEPs as does AvMed, which are the only two choices (other than crappy Ambetter or Molina plans) in the state for 2017.

 

[kgmom219]

It's funny that we agree on so many things about our businesses with the exception of this.

Yeah, but I'm the girl.

So I'm right.

Duh.

 

[LostDollar]

It's funny that we agree on so many things about our businesses with the exception of this-I won't work for free although it's not much of an issue in Florida since Florida Blue pays commissions for SEPs as does AvMed, which are the only two choices (other than crappy Ambetter or Molina plans) in the state for 2017.

kgmom's point is that she doesn't work for free either. She is a people oriented person in a people oriented business. Kgmom's experience is that when she helps people with their insurance problems, they and their friends in turn help kgmom with their insurance business. For her, it is cheaper than buying leads.

 

[YouGotMyMoney]

If you choose to write business that won't compensate you directly in the form of commissions, let the client know - ring your own bell - that your taking on risk without reward. Of course, cross sell - if you cross sold it would help a ton.

My question is why try an charge IFP clients a fee, which most will not pay and they can go to hc.gov direct. Maybe open a gofund.com account and ask for TIPs?

 

[kgmom219]

kgmom's point is that she doesn't work for free either. She is a people oriented person in a people oriented business. Kgmom's experience is that when she helps people with their insurance problems, they and their friends in turn help kgmom with their insurance business. For her, it is cheaper than buying leads.

Buying leads? What's that? People DO that? Whhhyyyyyy?

LD...Mike is just teasing me

 

[pfg1]

If you choose to write business that won't compensate you directly in the form of commissions, let the client know - ring your own bell - that your taking on risk without reward. Of course, cross sell - if you cross sold it would help a ton.

I don't do health, but if I did... that is what I would do. Let them know you get paid $0 for helping them... it will come back to you.
I've done similar in my business... spent plenty of time helping folks that can't move fwd with anything (that would pay me) at this time. I know by sewing the seeds, the harvest will come back to me later. Either from them directly, or from referrals.