Guess Who's Changing Their Comp on GI Med Supp?

sman

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I knew it was bound to happen. Aetna, American Continental and Continetnal Life will be changing their commission structure on GI business. We won;t be able to view it until late tomorrow. Any guesses on how low it will go? Here's a copy of the email:

[FONT=&quot]Medicare Supplement -- Important Commission Update[/FONT]
[FONT=&quot]Effective[/FONT][FONT=&quot] [FONT=&quot]October 7, 2013[/FONT][/FONT][FONT=&quot], your [FONT=&quot]Medicare Supplement Schedule of Commissions[/FONT] issued by the Company* has been [FONT=&quot]revised[/FONT]. The revised schedule(s) reflect a new commission structure [FONT=&quot]primarily [/FONT]for [FONT=&quot]Guaranteed Issue [/FONT]business which will allow us to maintain our competitive pricing.

[/FONT]
[FONT=&quot]What You Need to Know:[/FONT]

  • [FONT=&quot]The revised schedules will apply in all states where the Company's Medicare Supplement products are available except CO, OR, SC, TN, and WI.[/FONT][FONT=&quot][/FONT]
  • [FONT=&quot]Schedules vary by state - agents actively appointed to sell the Company's Medicare Supplement plans can view, download, and print their revised commission schedule(s) by logging onto the secure (agent) side of our website, aetnaseniorproducts.com[FONT=&quot] [/FONT]on or after 6:00 p.m. CST on [/FONT][FONT=&quot]October 4, 2013[/FONT][FONT=&quot].[/FONT][FONT=&quot][/FONT]
  • [FONT=&quot]The new schedules will apply to any new Medicare Supplement application that has an [FONT=&quot]applicant's application signature date[/FONT] on or after [/FONT][FONT=&quot]October 7, 2013[/FONT][FONT=&quot] [/FONT][FONT=&quot](regardless of the policy effective date).[/FONT][FONT=&quot][/FONT]
  • [FONT=&quot]Commissions shall be vested in accordance with the terms of your Contract with the Company.[/FONT][FONT=&quot][/FONT]
  • [FONT=&quot]Submission of a new application dated on or after the effective date of the applicable Schedule of Commissions will constitute acknowledgement and acceptance of its terms by the agent[/FONT][FONT=&quot]. [/FONT][FONT=&quot][/FONT]
[FONT=&quot]Contact your Managing General Agent and/or our Agent Services team should you have questions.[/FONT]
[FONT=&quot]Sincerely,[/FONT]
[FONT=&quot]
M_Atchison_sig.jpg
[/FONT]
[FONT=&quot]Michael Atchison
Chief Marketing Officer [/FONT]
[FONT=&quot]*Aetna Health and Life Insurance Company (AHLIC), American Continental Insurance Company (ACI), and Continental Life Insurance Company of Brentwood, Tennessee (CLI), all Aetna Companies (the Company). [/FONT]
 
I received it also. Hopefully it's 50% of full comp and not the $25.00 variety. Bunch of crap the DOI allows these companies to do this, talk about cherry picking.
 
I knew it was bound to happen. Aetna, American Continental and Continetnal Life will be changing their commission structure on GI business. We won;t be able to view it until late tomorrow. Any guesses on how low it will go? Here's a copy of the email:

[FONT=&quot]Medicare Supplement -- Important Commission Update[/FONT]
[FONT=&quot]Effective[/FONT][FONT=&quot] [FONT=&quot]October 7, 2013[/FONT][/FONT][FONT=&quot], your [FONT=&quot]Medicare Supplement Schedule of Commissions[/FONT] issued by the Company* has been [FONT=&quot]revised[/FONT]. The revised schedule(s) reflect a new commission structure [FONT=&quot]primarily [/FONT]for [FONT=&quot]Guaranteed Issue [/FONT]business which will allow us to maintain our competitive pricing. [/FONT][FONT=&quot][/FONT]
[FONT=&quot]

[/FONT][FONT=&quot]What You Need to Know:[/FONT]


  • [FONT=&quot]The revised schedules will apply in all states where the Company's Medicare Supplement products are available except CO, OR, SC, TN, and WI.[/FONT]
  • [FONT=&quot]Schedules vary by state - agents actively appointed to sell the Company's Medicare Supplement plans can view, download, and print their revised commission schedule(s) by logging onto the secure (agent) side of our website, aetnaseniorproducts.comon or after 6:00 p.m. CST on [/FONT][FONT=&quot]October 4, 2013[/FONT][FONT=&quot].[/FONT]
  • [FONT=&quot]The new schedules will apply to any new Medicare Supplement application that has an [FONT=&quot]applicant's application signature date[/FONT] on or after [/FONT][FONT=&quot]October 7, 2013[/FONT][FONT=&quot](regardless of the policy effective date).[/FONT]
  • [FONT=&quot]Commissions shall be vested in accordance with the terms of your Contract with the Company.[/FONT]
  • [FONT=&quot]Submission of a new application dated on or after the effective date of the applicable Schedule of Commissions will constitute acknowledgement and acceptance of its terms by the agent[/FONT][FONT=&quot]. [/FONT]
[FONT=&quot]Contact your Managing General Agent and/or our Agent Services team should you have questions.[/FONT]
[FONT=&quot]Sincerely,[/FONT]
[FONT=&quot]
M_Atchison_sig.jpg
[/FONT]
[FONT=&quot]Michael Atchison[/FONT]
[FONT=&quot] Chief Marketing Officer [/FONT]
[FONT=&quot]*Aetna Health and Life Insurance Company (AHLIC), American Continental Insurance Company (ACI), and Continental Life Insurance Company of Brentwood, Tennessee (CLI), all Aetna Companies (the Company). [/FONT]



Rumor is flat fee. But just a rumor and second hand at that.
 
So are there any companies out there still paying full comp on GI business? I realize they have to do it to keep rates competitive but I still don't agree with the DOI allowing companies to do this. So if my 300 MAPD client's suddenly lose their coverage one of these years I will lose $52,500 of income that I have worked so hard to build up. Makes me wonder if I should keep pushing the MAPD each AEP.
 
Minority view I'm sure, but as one who places nearly all med supp business with CLI I'm glad for the change. I have an occasional GI and will miss the extra comp. But I've worried that all the agents who go with them only with their GI business because of the full comp will drive up rates for my book of business with them. If giving up commission on GI cases keeps my clients from getting double-digit increases, I'm all for it. Now if they do the same for OE business, I'm done writing them.
 
So are there any companies out there still paying full comp on GI business? I realize they have to do it to keep rates competitive but I still don't agree with the DOI allowing companies to do this. So if my 300 MAPD client's suddenly lose their coverage one of these years I will lose $52,500 of income that I have worked so hard to build up. Makes me wonder if I should keep pushing the MAPD each AEP.

Only if they can't pass UW will you have to take the cut in comp.
 
Minority view I'm sure, but as one who places nearly all med supp business with CLI I'm glad for the change. I have an occasional GI and will miss the extra comp. But I've worried that all the agents who go with them only with their GI business because of the full comp will drive up rates for my book of business with them. If giving up commission on GI cases keeps my clients from getting double-digit increases, I'm all for it. Now if they do the same for OE business, I'm done writing them.

I agree. I told them 2-years ago they should cut off any agent that puts more than 10 % GI business with them. They knew they should do that but move to slow to ever figure out how bad they were getting dumped on.
 
Lets see, over the last couple years, the cheapest rates, full comp on g.i., full comp on over 80, and full comp on g.i. over 80.

Ticking time bomb!

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So are there any companies out there still paying full comp on GI business? I realize they have to do it to keep rates competitive but I still don't agree with the DOI allowing companies to do this. So if my 300 MAPD client's suddenly lose their coverage one of these years I will lose $52,500 of income that I have worked so hard to build up. Makes me wonder if I should keep pushing the MAPD each AEP.

Do you really think that your 300 MAPD's will become supplement prospects in the future? How much do they pay for the mapd?
 
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