Raleigh News & Observer Logo

UnitedHealthcare to stop paying insurance agents for selling ACA health plans | Raleigh News & Observer

×
  • E-edition
    • Customer Service
    • Support
    • Contact Us
    • About Us
    • FAQ
    • Sponsorships
    • Stay connected
    • Mobile & Apps
    • Facebook
    • Google+
    • Instagram
    • Twitter
    • Social Media Directory
    • N&O Store
    • Buy Photos
    • Databases
    • Archives
    • Newsletters

    • Blogs
    • Columnists
    • Crime
    • Education
    • Health
    • Local
    • North Carolina
    • Nation/World
    • Science
    • Thumbs Up
    • Traffic
    • Weather
    • Weird News
    • All News
    • Counties
    • Durham County
    • Johnston County
    • Orange County
    • Wake County
    • All Sports
    • Baseball
    • Canes
    • College
    • Columns & Blogs
    • High Schools
    • NASCAR & Auto Racing
    • NBA
    • NFL
    • NHL
    • Olympics
    • Outdoors
    • Panthers
    • Soccer
    • Schools
    • Duke
    • East Carolina
    • NC State
    • North Carolina
    • All Politics
    • The North Carolina Influencer Series
    • State Politics
    • Blogs
    • Columnists
    • PolitiFact
    • PolitiFact NC
    • Rob Christensen
    • Under the Dome
    • All Business
    • Blogs
    • Columnists
    • Health Care
    • Personal Finance
    • Real Estate
    • Shop Talk
    • Stocks Center
    • Technology
    • All Living
    • Video Now
    • Best-Kept Secrets
    • Blogs
    • Celebrations
    • Comics
    • Family
    • Fashion
    • Fitness
    • Food
    • Games and Puzzles
    • Home and Garden
    • Horoscopes
    • Mouthful
    • Past Times
    • Pets
    • Religion
    • Travel
    • Video Now
    • Arts News
    • ArtsNow
    • Books
    • Contests
    • Dining
    • Entertainment
    • Games
    • Movies
    • Music
    • Nightlife
    • Television
    • On the Beat
    • Happiness is a Warm TV
    • All Opinion
    • Columnists
    • Dwane Powell
    • Editorials
    • Influencers Opinion
    • Letters
    • Opinion Shop Blog
    • Other Views
    • Submit a Letter
  • Obituaries

    • Advertise with us
    • Place Ad
    • Apartments
    • Cars
    • Homes
    • Jobs
    • Legals
    • Obits/In Memoriams
    • Weddings
    • Today's Daily Deal
    • Special Sections
    • Today's Circulars
    • Rewards
    • Photo Store
  • Classifieds
  • Jobs
  • Moonlighting
  • Cars
  • Homes
  • Legals

Business

UnitedHealthcare to stop paying insurance agents for selling ACA health plans

By John Murawski

jmurawski@newsobserver.com

    ORDER REPRINT →

December 07, 2015 06:23 PM

UnitedHealthcare, the nation’s largest health insurer, has taken its biggest step toward discouraging enrollments under the Affordable Care Act.

United said it intends to stop paying sales commissions to agents who sell the company’s health policies under the ACA, the federal insurance program that provides financial subsidies to attract uninsured people and low-income applicants.

United’s new corporate policy, emailed to insurance agents Friday, will go into effect Jan. 1 in North Carolina and most of the two dozen states where United sells ACA coverage. That means that thousands of insurance agents nationwide won’t be paid for enrolling customers in ACA policies, a process that can require several hours of consultation to compare out-of-pocket costs, drug prices and provider networks between multiple health plans.

Agents who sold a heavy volume of United policies will lose thousands of dollars a year in commissions. The surprise announcement comes on the heels of a previous decision, announced three weeks ago, to slash agent sales commissions from as high as 10 percent to 2 percent, a move that agents decried at the time as an 80-percent pay cut.

Sign Up and Save

Get six months of free digital access to The News & Observer

SUBSCRIBE WITH GOOGLE

#ReadLocal

“The only time I’ve seen this before is when insurers are required by government to sell a product they do not particularly want to sell,” said Wake Forest University law professor Mark Hall. “Here, this seems consistent with an insurer that no longer wants to sell through the exchanges ... but is not allowed to withdraw immediately, so it’s pushing its commissions to zero until it’s allowed to exit.”

Agents say United’s decision puts them in an bind because they will have no incentive to steer customers to United plans, even if those plans are the best choices. Several agents said Monday that United offers some of the best-priced plans in North Carolina, where it operates in 77 counties.

“What’s troubling is this is making it difficult for people to get their plans,” said Rob Luisana, a broker with Pilot Benefits in Greensboro. “We’ve got to do what’s right for the patients.”

Luisana said his average United customer generates $420 a year in sales commission.

Minnetonka, Minn.-based United has more than a half-million people enrolled in ACA plans, and the public will still be able to enroll with United for next year on their own or through the help of a volunteer “navigator.” However, insurance agents will have to decide whether they will work for a 2 percent commission through the end of December, and work for free next year to promote United insurance products.

Last week United’s CEO Stephen Hemsley signaled that entering the ACA marketplaces was a mistake. The company in November lowered its earnings forecast, stopped marketing ACA plans and warned it might stop selling ACA coverage in 2017.

In an emailed statement, United spokeswoman Tracey Lempner said, “Our current actions are consistent with our long-stated approach to continually evaluate the dynamics of exchanges as they evolve and adjust to changes in the market accordingly.”

United’s e-memo told agents it’s ending sales commissions for ACA plans as well as for individual plans sold off the exchange. The latter are identical to ACA plans but customers can’t receive federal subsidies. The changes do not affect United’s Medicare plans or its other lines of health insurance.

“As insurance companies across the nation make adjustments in response to the evolving Marketplace, it is our sincere hope that you will continue to remain active in the health insurance market,” United’s notice reads. “Your knowledge and professional services are valued by consumers and carriers alike.”

Luisana said he does not intend to stop selling United plans. Instead, Luisana’s company started offering customers the option of paying a $150 consultation fee to Pilot Benefits when United recently cut the sales commission to 2 percent. Pilot Benefits might increase the fee now that the sales commission will go away.

Rolesville broker Leslie McMillan is also contemplating a consultation fee.

“I’m going to have to say, ‘If you want my help I’m going to have to charge you,’’ McMillan said. “It might be $50 an hour.”

Most agents are expected to stop selling United policies.

Rob Ferguson, an agent with Absolute Insurance Solutions in Raleigh, said he has 260 customers on United plans and will try to move those customers to Blue Cross and Blue Shield or Aetna plans, sold under the Coventry brand.

“If you want to go with United you can go on your own,” Ferguson said. “But you won’t have an agent to advocate for you.”

Ferguson said most of his customers are families, each family generating hundreds of dollars a year in commissions. For example, one of Ferguson’s customers, an optician with a wife and four children, is paying $1,520 a month for a United plan that’s been generating a sales commission of $1,824 a year.

“The thing that’s so disappointing to me as an agent is they’re changing the game and messing with people’s lives after the game has started,” Ferguson said.

John Murawski: 919-829-8932, @johnmurawski

  Comments  

Videos

Gene therapy company doubles plans for RTP jobs after receiving incentives

Durham proposing higher density to ease housing concerns

View More Video

Trending Stories

John Harris warned his father about legal red flags involving Bladen operative

February 20, 2019 02:13 PM

Three observations from No. 8 North Carolina’s 88-72 road win over No. 1 Duke

February 21, 2019 02:18 AM

Transgender woman has asked to be moved from a men’s prison. So far, NC has said no.

February 20, 2019 01:42 PM

Zion Williamson injured as No. 1 Duke falls to No. 8 UNC

February 20, 2019 11:11 PM

Zion Williamson injured during Duke-UNC game after foot blows through shoe

February 20, 2019 09:53 PM

Read Next

Sam’s Quik Shop property in Durham sold for $5 million

Business

Sam’s Quik Shop property in Durham sold for $5 million

By Zachery Eanes

    ORDER REPRINT →

February 21, 2019 10:37 AM

The property of Sam’s Quik Shop, the popular bottle shop that closed last year, sold for $5 million. Here’s what’s planned on the property after developer Wilmorite Construction bought it.

KEEP READING

Sign Up and Save

#ReadLocal

Get six months of free digital access to The News & Observer

SUBSCRIBE WITH GOOGLE

MORE BUSINESS

The Latest: Smollett quiet after posting bond, leaving jail

Celebrities

The Latest: Smollett quiet after posting bond, leaving jail

February 21, 2019 06:12 PM
Prosecutor: Actor gave detailed instructions for fake attack

National

Prosecutor: Actor gave detailed instructions for fake attack

February 21, 2019 05:49 PM

News

Denial letters: Thousands could lose La. Medicaid coverage

February 21, 2019 07:10 PM

Business

The Latest: Entergy to pay $5M penalty; can build plant

February 21, 2019 07:08 PM

Business

Lawmakers endorse rules for how to pay for infrastructure

February 21, 2019 07:08 PM
Fendi honors Lagerfeld and fashion’s ‘longest love story’

Celebrities

Fendi honors Lagerfeld and fashion’s ‘longest love story’

February 21, 2019 07:08 PM
Take Us With You

Real-time updates and all local stories you want right in the palm of your hand.

Icon for mobile apps

Raleigh News & Observer App

View Newsletters

Subscriptions
  • Start a Subscription
  • Customer Service
  • eEdition
  • Vacation Hold
  • Pay Your Bill
  • Rewards
Learn More
  • About Us
  • Contact Us
  • Newsletters
  • News in Education
  • Triangletoday.com
  • Legal Notices
Advertising
  • Advertise With Us
  • About Our Ads
  • Place a Classified
  • Local Deals
  • N&O Store
  • N&O Photos
Copyright
Commenting Policy
Report News
Privacy Policy
Terms of Use


Back to Story