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

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Word is out that Healthnet is discontinuing working with general agencies in Arizona and California. They will be requiring agents to re-contract with them directly. It may be interesting to see who may follow that same path....
 
This leads me to believe that they are up for sale and want to cut expenses. By not listing overrides on their balance sheet they will look better.

If carriers could make more money cutting out their marketing channel why wouldn't others have done this already? If they could cut out agents and sell at a lower acquisition cost they would do that also.

So basically, I just don't get it.

Rick
 
Yes, all contracts with an override were termed. It is Health Net's way to thank us all for all of the contracting, training, and support we have given to our agents. We round them up and Health Net takes them away.

I agree with Rick. Either they are going to finally be sold, or they are going to cut everything because of all of the dual (Medi-Medi) business that they write. Watch out. Agent commissions could be next if someone doesn't buy them.

Rob
 
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Word is out that Healthnet is discontinuing working with general agencies in Arizona and California. They will be requiring agents to re-contract with them directly. It may be interesting to see who may follow that same path....

March 4, 2015

A.M. Best Affirms Ratings of Health Net, Inc. and Its Subsidiaries

"In addition, the costs of participating in the exchange and other fees related to the Patient Protection and Affordable Care Act has led to a significant decline in earnings at some of Health Net’s core insurance subsidiaries. "

They seem to be worrying about their earnings and credit ratings.
 
This leads me to believe that they are up for sale and want to cut expenses. By not listing overrides on their balance sheet they will look better. If carriers could make more money cutting out their marketing channel why wouldn't others have done this already? If they could cut out agents and sell at a lower acquisition cost they would do that also. So basically, I just don't get it. Rick

Which companies do you think would be potential suitors? God, I hope that United is not one of them.
 
Which companies do you think would be potential suitors? God, I hope that United is not one of them.

If I had a crystal ball, I would guess Aetna. But that's just a WAG. Health Net does have some dual and pretend dual plans that probably would help Aetna.

UHC doesn't need them unless they are excited about entering the IFP market in CA just before it completely self-destructs.

Rick
 
I know people who have huge books with health net. My book is not as big, I guess I'm going back to life insurance. I'm afraid what's next in the Medicare world.
 
I know people who have huge books with health net. My book is not as big, I guess I'm going back to life insurance. I'm afraid what's next in the Medicare world.

What they pay agents is a small drop in the bucket of what they could pay us. We would be compensated at least twice as much of the smaller MAs and Humana hadn't complained so much in 2008. For those up lines that truly train and work with agents, it is a slap in the nuts and a loss for those who need that level of support. But, how much does any MA or independent agent need an FMO that merely serves as a place to drop our business? Maybe Healthnet is on to something?
 
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