HealthNet Will Pay MA Renewals FOR LIFE

[wehotex]

Here's the e-mail that I received today:


Dear Valued Partners:

Just in case you didn't hear the good news regarding Health Net's change
in compensation rules for 2012 we are sending this reminder. The CMS
Marketing Guidelines shown below discusses the fact that a plan is
required to pay Producer compensation for a 6-Year Cycle. After the
6-Year Cycle is complete it is then up to the plan sponsor whether or
not to continue to pay agents the renewal compensation. You will be
glad to know that in 2012 Health Net modified it's compensation policy
to now pay renewal compensation past the end of the 6-Year Cycle and for
as long as the Member remains continuously enrolled in the Health Net
Medicare Product that the Producer enrolled them in. I trust that you
will find this favorable and a confirmation that Health Net remains
committed to the broker channel!
Thanks for your continued loyalty to Health Net.

PS. This is retroactive to all Medicare Advantage business you have
written with Health Net.

2012 CMS Marketing Guidelines
(Embedded image moved to file: pic08405.jpg)

2012 Health Net Compensation Schedule
(Embedded image moved to file: pic08826.jpg)


Please call your Account Executive or Broker Services at 800-708-7646 if
you have any questions. We want to thank you for your continued
partnership and support!!!

 

[Chazm]

Though nice, what's the chances a client stays more than 2 to 3 years on a MAPD plan?

 

[billberry12]

I'd guess about 0 chance of a client keeping the same MA plan over 6 years.

 

[Russ]

Ive had clients stay 2 years+ with United Healthcare. Still active.

 

[Mink]

Sounds like if they switch to another new & improved Healthnet plan down the road, no commish.

 

[wehotex]

Though nice, what's the chances a client stays more than 2 to 3 years on a MAPD plan?

That's what I thought too. But I've had a really high percentage of ppl that have remained on certain plans for 6+ years already. It is doable.
In some markets, there is very little competition. as a result, there is much less movement from plan to plan. Other plans' copays are so low that ppl on budgets will not go anywhere else.

 

[SportsNut]

The CMS Marketing Guidelines shown below discusses the fact that a plan is required to pay Producer compensation for a 6-Year Cycle. After the
6-Year Cycle is complete it is then up to the plan sponsor whether or not to continue to pay agents the renewal compensation.

Ya gotta love that "Valued Partner" salutation. I guess better than addressing the agent how they might really want to...

So if CMS guidelines state a 6 yr cycle, I would doubt that this is reset by going to a new carrier. In other words, by going to a new carrier merely continues the renewal comm, as it doesn't reset to a new 1st yr comm, so why would this extend the 6 yr period for comp.?

Soooo, how long will it be that carriers might consider maybe a lower or no comp for clients that are 6+ yrs in MA...?
Answer: As soon as they figure that they can still atract the business and get away w/o paying a comm. Just moving us another inch toward the exit door...

 

[DS4]

Sounds like a lot of baloney. This is some fluff the Marketing Dept at Health Net came up with.
What are the odds MA's will even be around in three years?
What are the odds Health Net will continue to even offer a MA?
In 2008, in my county, we had 30 Ma's.
In 2012, 4.

 

[Chazm]

I think my area is growing in MA plans. Every year I hear of about 2 or 3 new companies moving in. And that's only the ones I hear about.

 

[MedSuppPro]

... So if CMS guidelines state a 6 yr cycle, I would doubt that this is reset by going to a new carrier. In other words, by going to a new carrier merely continues the renewal comm, as it doesn't reset to a new 1st yr comm, so why would this extend the 6 yr period for comp.?

[FONT=Verdana","sans-serif]Great response!!! [/FONT]

[FONT=Verdana","sans-serif]Unfortunately, you and Rick are the only other agents on this Forum who understand the Rent-A-Agent 6 year CMS Rule. It is for that reason you are the recipient of this week’s; [FONT=Verdana","sans-serif]Agent of the Week Award!!![/FONT][/FONT]

[FONT=Verdana","sans-serif]That said, I like this company for being different and approaching the agent as a partner. They get it! This is a carrier that I would love to pour my heart out for. Where do I go to sign-up! [/FONT]

[FONT=Verdana","sans-serif]Now, compare this carrier to another one that like a thief in the night sends out a one page termination letter and to date fails to explain (FAQ’s) why and what my options are. The throw me under the bus carrier I’m talking about is United Healthcare. [/FONT]