In yet another sign of the erosion of health insurance commissions for agents, Cigna has informed their appointed agents that they will not pay commissions on most of their California health plans in 2016. Cigna has stripped away any agent compensation for their 2016 Silver, Gold, and, Platinum plans sold during open enrollment. In addition, there will be no commissions paid on any health plan that an agent helps a client enroll into during a Special Enrollment Period in 2016.
Post related to the commissions paid to insurance agents from Covered California, health insurance, carriers, health plans for assisting consumers with enrollment.
Covered California has locked Certified Insurance Agents into representing all exchange plans to consumers and forbids agents from steering consumers to health plans with the best commission structures. Unfortunately, Covered California has no regulations that address any minimum compensation levels that the health plans or health insurance companies must pay agents for their efforts. Covered California announced over the summer that compensation for Medi-Cal enrollments would end for agents. Most recently Western Health Advantage (WHA) announced a split commission structure where Certified Agent enrolments would receive less compensation for Covered California plans than WHA’s off-exchange plans.
2017 was my best year yet for commission income from health insurance enrollments. I realized $53,000 from commissions paid on IFP, small groups, Medicare, dental, and vision enrollments. Approximately 80% of the commission income was from the IFP market and the rest split between small group and Medicare. The revenue from advertisements on my website increased and I actually made a little bit of money on a book I published in 2016.
It’s been over seven months since I heard anything from Covered California’s SHOP program and the commissions they owe me from the small group I helped enroll in their small business health options program. The lack of communication from SHOP is a flash back to over forty years ago when I wouldn’t hear from my […]
Certified Insurance Agent John Dickey, who is already taking Covered California to small claims court, is now in conversations with a Southern California law firm to potentially file a class action lawsuit against Covered California on behalf of agents who suffered a loss of income because of the numerous problems during open enrollment for 2014. Dickey’s […]
It is no news to the first wave of Covered California Certified Insurance Agents in 2013 that Californias online health insurance exchange was not ready for business. The number one complaint from agents was they were not receiving credit, and ultimately commissions, from the numerous individual and family enrollments they were performing. […]
What’s the difference between a Covered California enrollment for a subsidized private plan and Medi-Cal? Nothing when assisted by a Certified Insurance Agent. A Medi-Cal enrollment takes just as much knowledge, experience and time to perform for an agent as an enrollment for a private plan through Covered California. Yet, a Medi-Cal enrollment only yields […]
The commission structure for individual and family plans has been on a steady decline since the Affordable Care Act began to be implemented in 2011. As the commissions to agents have decreased, the request from clients for assistance has increased. Now a major carrier has announced a reduction in commissions for small group plans. There […]
Covered California enrollments assisted by Certified Insurance Agents are producing a minimum of $9.2 million per month in commissions as estimated from enrollment statistics released by the states ACA exchange. While this number may sound impressive, a good chunk of the enrollments were for individuals and families who already had health insurance. With many health […]
Through casual conversation and on various Internet forums numerous agents and brokers have mentioned they arent getting paid commissions for business they submitted through Covered California. Is there a crisis of commissions not being paid to Certified Insurance Agents? Without reliable data from the agent community it is hard to tell if the missing commissions […]