12/08/2010
Commission change goes into effect February and April 2011
We are entering a new era in our industry and remain committed to providing top-quality coverage while keeping costs under control. In support of minimum medical loss ratio (MLR) requirements we are continuing our efforts to reduce administrative costs. Those efforts include right-sizing our sales and marketing expenses, including commissions structures.
Similar to what many carriers across the country have already done to respond to the changing market conditions, we are moving from a percent-of-premium to a per-employee-per-month (PEPM) or per-member-per-month (PMPM) commission structure. We have also modified our tiering to acknowledge the scalability of total operating expense by group size.
- Individual Plans - commission structure will change beginning Feb. 1, 2011
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Regence EvolveSM
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Medical
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Dental
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$12.00 PMPM
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$2.00 PMPM
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- Group Plans - commission structure will change beginning Apr. 1, 2011
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Group Size
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Medical
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Dental
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1 to 2 subscribers
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$0.00 PEPM
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$0.00 PEPM
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3 to 4 subscribers
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$5.00 PEPM
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$1.50 PEPM
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5 to 9 subscribers
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$15.00 PEPM
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$3.50 PEPM
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10 to 50 subscribers
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$25.00 PEPM*
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$3.50 PEPM
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*$25.00 per employee per month is equivalent to the current 5% of premium commission level as calculated on average per employee premium in the community pool.
For existing Regence groups, this change will be implemented on a rolling 12-month basis. For group renewals prior to Apr. 1, 2011, commission will continue to be paid under the current structure until the next renewal date. At that time, the changes noted above will take effect.
We value our partnership and appreciate your continued support. If you have any questions, please talk to your Regence Sales contact.
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