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Webinar Details

  • Pub Code: C1M07-11WEB
  • Speakers
    • Scott Leavitt
    • George Pantos
    • Al Redmer, Jr.

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New Compensation Schemes for Brokers and Their Implications for Agents, Employers and Insurers

February 23, 2011 Webinar - Recording and Materials

Beginning Feb. 1, Aetna Inc. is changing the way it pays insurance brokers who sell products in the large-group market. Rather than keeping a percentage of the premiums, brokers in some states will be reimbursed based on a “service fee model” in which employers will be asked to compensate brokers directly for their services. Some insurers are likely to follow Aetna’s lead if the strategy helps them meet new reform-driven medical loss ratio rules. Other pay models being implemented will pay brokers flat monthly fees or commissions on base (rather than full) premiums. All of these changes could be financially devastating to brokers and cause profound changes in the agent-employer relationship…but there are new opportunities for brokers as well.

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Sponsored by Atlantic Information Services, Inc., publisher of AIS’s Health Reform Week, Health Plan Week and Medicare Advantage News

To ensure compliance with the new medical loss ratio rules, many health insurers have already made changes to the way commissions are paid for products sold in the individual market, such as calculating commissions on the base premium rather than on the full premium, which might be higher based on the member’s health status. Such a strategy would decrease commissions that health insurers report as revenue and therefore boost MLRs. Other strategies include paying brokers a flat per-month fee for each employee covered by a small-group plan. Some health insurers have ended commission-based models to avoid the artificial inflation that results as premium rates increase. Although some commission models will reduce pay substantially, some could create new opportunities for brokers as well. In Utah, for example, brokers who sell small-group products through the exchange receive a commission of $37 per employee per month, about four times higher than rates paid to brokers through the Massachusetts Commonwealth Connector.

Listen in and get answers to these and other questions that are critical to agents, employers and insurers:

  • Will employers be willing to compensate brokers and agents if the commission percentage isn’t included in the premium? What steps can be taken by insurers and agents to make this more likely?
  • What changes have insurers already made to commission structures? What other compensation plans are we likely to see this year … and what are their pros and cons for agents?
  • What can brokers do to ensure employers understand the value of their services?
  • What new services can brokers and agents offer to their clients to protect their bottom line and ensure that enrollees understand their coverage?
  • How will brokers be compensated through state insurance exchanges once they become operational?

Speakers

SCOTT LEAVITT is the owner of Scott Leavitt Insurance & Financial Services, based in Boise, Idaho. He also is the president of the Idaho Association of Health Underwriters and the 2008-2009 president of the National Association of Health Underwriters. Mr. Leavitt entered the insurance industry in 1992 as a captive agent with the MONY Group. Two years later, he started his own insurance agency. He is also a founding partner of My Wellchoice+, a wellness promotion company. Mr. Leavitt is a frequent speaker across the country regarding wellness and health care reform and has been quoted in major media outlets.

GEORGE PANTOS is the executive director of the Healthcare Performance Management Institute, a Washington, D.C.-based think tank. He previously was chief counsel for the Self Insurance Institute of America and is a former partner in the national law firm Vedder Price of Chicago. Mr. Pantos co-founded and served as counsel to The ERISA Industry Committee (ERIC), a national coalition of 125 major employers concerned with ERISA benefits issues. Prior to entering private law practice, he was Deputy Under Secretary of Commerce in the U.S. Department of Commerce. Earlier in his career, Mr. Pantos worked as an attorney for the U.S. Chamber of Commerce.

AL REDMER, JR. is a former Maryland insurance commissioner and a former health plan CEO. He is now a partner and the president of Landmark Insurance & Financial Group with operations in the mid-Atlantic region. He is a licensed insurance and stock broker with broad experience in sales, management and business development. Mr. Redmer was appointed insurance commissioner in 2003. After leaving office, he served as CEO of Coventry Health Care of Delaware, Inc. In the 1990s, Mr. Redmer served as the House minority leader in the Maryland general assembly. He is a member of the Maryland Association of Insurance and Financial Advisors, a Board member of the Maryland Association of Health Underwriters and a member of the Peninsula Regional Health Council.

Moderator: Steve Davis, managing editor of Health Plan Week

Designed Especially For

  • Insurance brokers and agents
  • Health plan CEOs, CFOs, chief operating officers, product development and sales and marketing executives, government affairs and compliance directors, market researchers and actuaries
  • Pharmaceutical company executives and marketers
  • Provider group CEOs, administrators and directors of managed care contracting
  • Attorneys, actuaries and consultants

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Written Materials

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New Compensation Schemes for Brokers and Their Implications for Agents, Employers and Insurers

Place your order through our secure shopping cart

$329.00
$329.00

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