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2-50: Anthem's New Small Group Commission Structure

Mar 11, 2011

New Small Group Agent Commission Structure Announcement

Dear Valued Agent Partner,

During a time of uncertainty, it's important to be aligned with a carrier that has the experience, financial stability and provider network to offer you and your clients' peace of mind. Anthem Blue Cross is committed to our agents in the small group market. We understand that you are the foundation and strength of our business. When our agents succeed, we succeed.  With your help, our focus will continue to be on maintaining affordability while offering high quality health plans to our members.

After careful consideration of numerous options, including a Per Contract Per Month (PCPM) structure similar to what other plans across the country have implemented, we will be introducing changes to the commission structure for small group medical business.  These changes will impact both agent-directed business as well as business that comes through a General Agent partner.  While the change will not take place until July 1, we know through our extensive discussions with agents that early notification is critical for you and thus we are sharing this news as early as possible

Small Group AgentCommission Structure - Effective July 1, 2011
Beginning July 1, 2011, we will pay commissions for NEW Small Group (2-50) business on a graduated tiered model as follows:  

  • 1st year - 6.5% of premium paid
  • 2nd through 6th year - renewal commission steps down by .3% each year to a floor of 5% for the sixth year and beyond 
  • Commissions on annualized premiums of $500,000 and over remain unchanged at .8%.

All in-force small group business sold prior to July 1, 2011 will not be affected by this change
 and will continue to be paid on the commission schedule in place at time of sale. 

Please note, our Specialty lines of coverage will continue to pay as percent of premium for Small Group books of business. 

Mitigating the Rising Cost of Care
Anthem believes that mitigating premium costs is critical to our continued mutual success. This "step down" schedule helps to counteract the effects of premium inflation, now and in the future.  To understand more about this and to answer some of the questions you may have about our change, we've included
this FAQ. 

We will share more details with you in the coming weeks, including the final contract amendment. Until more details are available, please contact broker services or your Regional Sales Manager if you have questions or would like to discuss the change.


Mark Morgan 
Vice President & General Manager
Small Group Business
Anthem Blue Cross

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