Healthnet to Do Away with GA's in AZ and CA

[Biggz33]

Calif friend heard a rumor that HealthNet would make agents "go captive"!!- good grief.

I don't know. I could see this. Going captive will thin the number of agents that work with them dramatically. HealthNet will then be able to cherry pick on the agents that have large blocks and few to no CMS violations. Being able to better police their agents means fewer CMS complaints which means possibly better star ratings and more money.

Just my two cents.

 

[GreenSky]

I don't know. I could see this. Going captive will thin the number of agents that work with them dramatically. HealthNet will then be able to cherry pick on the agents that have large blocks and few to no CMS violations. Being able to better police their agents means fewer CMS complaints which means possibly better star ratings and more money.

Just my two cents.

And dramatically raise their cost. What agent with a decent book would work for a carrier for less than $150K income?

Captive costs more than independent. If they want to write business they have indy agents. If they don't, they'll go with just captive.

Rick

 

[mickeyma]

I received a termination notice from Health Net. Since I have never had a complaint filed against me in 3 yrs with HN and since I have never been accused of breaking company rules or CMS procedures and since I have nearly 150 cases on the books, I naturally called to find out why.

Broker services would only tell me it was a "business decision." They maintained that pat answer despite my persistent requests.

I received an email today from Timothy S Daniel (he does not give his relationship at HN) stating that (in capital letters) "THIS DECISION HAS NO EFFECT ON YOUR RELATIONSHIP WITH HEALTH NET AS YOU ARE CURRENTLY CONTRACTED WITH US AS AN INDEPENDENT PRODUCER. FOR YOU, IT IS BUSINESS AS USUAL."

It added that "this is purely a business decision to which no other details will be provided.

OK, so why the termination letter in the first place since I'm contracted as an independent producer?

BTW, speculation that HN will be purchased by Aetna may be premature. A recent newspaper article said Aetna was pursuing Cigna or Humana.

 

[GreenSky]

No question that Health Net sucks. Here's the response when I asked about moving forward.

Hi Rick,

As of 8/1/15 you will no longer be contracted to sell Health Net
(commissions will still continue) and would call 800-708-7646 to see what
your contracting options are going forward.

Thank you,
National Medicare Broker Services

Looks like they really would like zero business. Which is pretty much what they'll get.

Rick

 

[KINGBICHO]

Healthnet was helping the state implement the cci which had kept being pushed back . In January all the duals (amber2)were moved over to the program. Healthnet starting seeing a huge disenrollments from cci over to saphire (look alike) which the state didn't like it . Coming off sanctions just a few years ago Healthnet does not want to risk losing there govt biz including the aca and the tri care contracts so Healthnet blames the Fmo for the Disenrollments and terms contracts to slow down disenrollments from cci to sapphire...two weeks ..before Healthnet termed all the Fmo/magy they had termed a particular Fmo(one of the largest out of sd ) who was moving business by the thousands

I have a buddy that works for that SD FMO, they were told that the FMO had ask for more money to HN due to that over 90% of business was written under HN. Sounded bunch of BS since no carrier termed a FMO asking for more comp. I believe this FMO is now churning business thru Scan. My friend says that medi medi business will soon come to an end.

 

[wehotex]

I have a buddy that works for that SD FMO, they were told that the FMO had ask for more money to HN due to that over 90% of business was written under HN. Sounded bunch of BS since no carrier termed a FMO asking for more comp. I believe this FMO is now churning business thru Scan. My friend says that medi medi business will soon come to an end.

Very sad if that's true. Calif is VERY welfare happy. Many of those Medi-med that I have in Calif would not be qualified for Medicare Medicaid status in other states. Some of those Cal Medi Connect slipped thru my hands because I didn't realize they would be affected too.

----------

No question that Health Net sucks. Here's the response when I asked about moving forward.

Hi Rick,

As of 8/1/15 you will no longer be contracted to sell Health Net
(commissions will still continue) and would call 800-708-7646 to see what
your contracting options are going forward.

Thank you,
National Medicare Broker Services

Looks like they really would like zero business. Which is pretty much what they'll get.

Rick

Check out this scalding commentary from a prominent So Cal FMO owner:



Health Net notified AGA of the termination and stated this was just a “business decision.”


​ Let’s examine how this “business decision” affects agents, agencies, and your clients. This decision means Health Net will no longer support:
AGA’s co-op marketing
Our in house event team
AGA's call center
Our training center
​Supply distribution centers
​And any sales and commission support you currently receive from AGA

​
​ Health Net’s "business decision" is to no longer support the agents and agencies that helped build them in the past.

​_____________________________ ______________________________ ___________________​

This “business decision” is in keeping with Health Net’s trend of lowering or eliminating the commission they pay their agency partners and their agents.


Effective 1/1/2015, Health Net rolled all Amber II plans into Cal MediConnect. At this time Health Net also made the decision to reduce the commission for these members from lifetime to only 3 years. This move to the Cal MediConnect plan was done even though the provider networks and enrollment processes were far from optimal, putting your renewals and your beneficiaries in jeopardy.


Health Net did not need to move these members to Cal MediConnect and did not have to reduce your commission.


Again their “business decision" was was to NOT support their agents, agencies or beneficiaries.
​

Can you and your clients afford Health Net’s next
“business decision?”

 

[FirstSierra]

Now, HN is downgrading the Amber 2 and coming out with a new Amber 2 (Plus or Premier?) that had the old Amber 2 benefits.

Who can guess why? Oh, yeah, so they can churn their own client base and get out of paying the agency overrides. I cant believe that plan was approved. Seems very dirty.

Oh, the official HN line as to why they cut agencies: "So they could get rid of some nonproducing agents. It allows them to focus on the agents who write business." Ask them how it works and you will see them stumble and run.

As I have said before - Look out agents, you are next.

 

[wehotex]

Now, HN is downgrading the Amber 2 and coming out with a new Amber 2 (Plus or Premier?) that had the old Amber 2 benefits.

Who can guess why? Oh, yeah, so they can churn their own client base and get out of paying the agency overrides. I cant believe that plan was approved. Seems very dirty.

Oh, the official HN line as to why they cut agencies: "So they could get rid of some nonproducing agents. It allows them to focus on the agents who write business." Ask them how it works and you will see them stumble and run.

As I have said before - Look out agents, you are next.

I don't live in Calif anymore, but know that I am really spooked about the way that they are doing things! Do they REALLY pay the agents that much?!! I'm sure that their worthless execuholes make more just belong they belong to their "club". So Cal has many me-too plans, imo. Doesn't this put the agent in a more persuasive position to "steer" the prospect into a plan where there a few which are alike? This move puts an agent into a position where they can steer AWAY from HealthNet and into a plan that treats agent and customer better. Other markets are more driven by exclusive IPA contracts, not as much of those in SoCal.
Do you work in Ariz?

 

[Brownie]

Well it's totally baked in at this point - Centene Corporation appears to be the buyer and they're a full-on medicaid play. HN stockholder meeting is Oct 23, 2015 and the HN Board supports the buyout.

And it wasn't just GAs and FMOs, no new Advantage contracting in southern Cal at all, just Sup.