Early Monday Morning, United HealthCare sent a Dear John email to independent agents and brokers. On fully insured group health plans of 100 or more employees, United HealthCare will no longer pay commissions. Instead, affected agents are advised to ask their clients to pay them directly.
United’s Dear John Email:
UnitedHealthcare has put in place administrative services to facilitate the collection and disbursement of fees the customer will pay the broker/service provider for services rendered.
In Texas, we are moving to a non-commissionable basis for groups with 100+ employer market, for fully insured medical business (self-funded and stop loss are not affected by this change).
This change will be implemented for groups with 100+ employer market for new and renewing business effective on or after Jan. 1, 2012. These changes are being made as part of broader effort to reduce expenses and expand transparency.
To learn more about the broker/service provider compensation changes you may contact your UnitedHealthcare representative, and please review the following material:
Frequently Asked Questions
Broker/Service Provider Compensation Changes Checklist
Billing Agreement Exhibit
Sample 5500 Form Report
Presentation for Brokers to use with Customers