I found Humana’s Letter to Senator Max Baucus here. (UPDATE, this link was taken down, so I have to find this document posted somewhere else?!?)
This is kind of a weird website, but I found it here: http://www.savefile.com/files/1870503
Caution: Reading this will make your blood boil!
Reconstructing the events of October 15th, from what I heard, Humana was the first to come out with a $500/year commission via a Teleconference call in the morning of October 15th. I wasn’t on the call, but later that day, I spoke with someone who was on the call. That agency put out an announcement of Humana’s commissions and that’s what started the “bidding war” for Independent agent commissions.
Then 9 days later, they sent the above letter saying “we were outraged at the MA Sales commissions recently announced by certain health plans.” They end with, “In conclusion, the vast majority of sales made by Humana are made through our long time employed sales force, which we believe is a much better long term solution for Beneficiaries, Plans and the administration of the program.”
Ve lo consiglio, date un occhio alle ultime notizie
The tone of the whole call sounds like a funeral eulogy to me. They basically say that anyone besides their own captive agents sell on PRICE only. I’m OFFENDED. Remember they were the ones with $0 for MA and PDP at the Walmart and they enrolled people who only wanted PDP assistance in both MA and PDP due to $0 additional plan premium, which is price. That is where the whole Sales Appt Confirmation Form came from, the H Captive Agents.
Now that they are having large price increases everyone else sells on PRICE and their own captives are the only ones who sell on VALUE. HELLO???, OOPMs of 6,000, I/P Hosp of $950 (1 hospitalization and a few Drs appts along with your premium and you could just stay on a supp, where is the VALUE when you use the policy and you are out more than staying on a supp? Only VALUE I see is in not using it for any medical)… If VALUE is a gym membership for an 80 or 90 year old, I clearly need new training on VALUE… This call basically says that any agent remaining with them (even for their renewals, if any) will not be utilized in the future. Where is that memo??? Last memo I saw was we’re pleased that with CMS guidance we are able to raise our piddly monthly commissions by $2.00. WooHoo…
Humana is going to replace all independents they deal with by using MECA (Medicare Exclusively Contracted Agents) so they can boost their stock earnings and control market.
This is their 3rd quarter 2008 Earnings Conference Call on 10/27. They lost money like most companies related to Mortgage Market and agents are paying for this by cutting commissions. This is how they plan to bring up their earnings per share from $1.09 in the 3rd quarter to $5.90 to $6.10 in 2009.
The part about agents is at about minute 9:24 but the interesting and most significant part is at 11:20. Listen to the whole call though.
http://web.servicebureau.net/conf/meta?i=1113070253&c=2343&m=was&u=/w_ccbn.xsl&date_ticker=HUM