Commission Reductions for ACA ?

[starproducer]

Have there been Commission reductions recently for Assurant and UHC? That is what my MGA told me unless they are trying to get an extra point out of me saying that Assurant has just recently dropped their commissions by a point.

Also saying that UHC Golden Rule just came recently out with their commissions for 2015 and is paying different commissions in different states with states like PA and TX paying the worse commissions 3-4 points less than states like florida.

Just have very little trust dealing with under 65 health insurance MGAs vs FMOs in Medicare which is the business i am coming from. they are more straight up . Any commissions changes always come from the carriers not the MGA or FMO.

Is Golden Rule paying an advance?

Any thoughts

 

[somarco]

U65 commissions have been steadily dropping for the last 4 years. Yes, the vary by state. I don't know any carriers offering commission advances. You might get it from your FMO but expect it to have some teeth in it as well as a haircut.

 

[taterpeeler]

first, my UHC rep told me she would call me today with 2015 comp in Texas... there will be 2 comkission structures. on exchange and off using 2 different companies... all savers for on and golden rule off.

no offense with this next point.... why in the hell would any agnet take an advance on ACA comp... my view its foolish with the potential chargebacks.....

 

[YouGotMyMoney]

no offense with this next point.... why in the hell would any agnet take an advance on ACA comp... my view its foolish with the potential chargebacks.....

Cash Flow, simple business concept.

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I don't know any carriers offering commission advances

uhc/gr
humana
assurant

all offer advances, whether direct without an FMO is another situation.

 

[kgmom219]

Cash Flow, simple business concept.

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uhc/gr
humana
assurant

all offer advances, whether direct without an FMO is another situation.

Cash advances after year 3 in the biz is just silly. If your book isn't there, its time to move on.

 

[somarco]

No, Tater was right on this. Advances on Ocare business is just foolish.

 

[SamIam]

I didn't realise people are still taking advances on health biz.

 

[starproducer]

If your selling correctly there wont be any charge-backs especially if your selling on exchange and target people who are getting basically free health insurance because of the subsidy

 

[AllenChicago]

I didn't realise people are still taking advances on health biz.

From what I've read, the Advance Commissions are being paid out of the Field Marketing Organization's (FMO) business account. They (the FMO) still are paid month to month by the carriers. Agents who have a lapse rate over X% are either put on Earned Commission, or terminated.
ac

 

[taterpeeler]

advance scenario 1: client buys jan 1 eff. client calls ffm to change income, sep generated... has new plan options with different carrier.... boom, charge back

2:
client changes income and gets new sep, keeps same plan. the old one cancels and now a charge back, yes you got a new sale but just think about the addminn nightmare

3:
client buys in july and you get a 9 month advance.... plan will not pay out, charge back

4:
you have several of these in #1 and now new client calls in march for sep you the agent know you owe xyz carrier 2500$ in charge backs even though you know in your heart xyz is the correct choice you sell abc company to at least get paid something

I have been in the biz 22 years and have a large book and KGB mom is correct and smoraco too... you still need advances go find a new job. The cash flow comment is just crazy thinking in an ObamaCare era.....

I say any agent taking advances in an ObamaCare era... 22 years or 2 months.... your placing your neck in the chopping block

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FMO's are another story... worthless as teets on a boar hog...... they need to be eliminated