Tuesday, June 04, 2019

It's all about the Benjamins

As regular readers know, it's become somewhat the norm for carriers to drastically cut, or even abolish, agent compensation. And it's also commonplace for so-called agent associations to ignore this. That's because the dirty little not-so-secret is that they're run by and for the benefit of the carriers, not the agents. With one notable exception.

In the event, UHC decided to completely do away with agent commissions on larger group health cases. Unfortunately for the carrier, however, the "notable exception" had already successfully lobbied to make that move a lot more difficult:

"Louisiana Insurance Commissioner Issues Cease and Desist Order to United HealthCare."

The commish issued that order to derail UHC's plan to "implement the removal of producer commissions from upcoming renewals of certain group health insurance products."

On the one hand, kudos to HAFA for pushing legislation that curtails this abuse, and to the Pelican State for enforcing it.

On the other hand, lest folks think that this is an altruistic move by the DOI:

"... may additionally violate the insurer’s obligation to pay tax on its annual premiums under R.S. 22:842"

So there you have it.

It's all about the (tax) Benjamins.


[Hat Tip: Co-blogger Bob V]
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