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51+: Aetna Reverts to "Percent of Paid Premium" Commission Structure

Mar 30, 2011

Aetna 

Update on Aetna’s Broker Compensation Strategy – California Large group medical accounts (51+ eligible employees) and Public & Labor sector.

In November, we sent you information about broker compensation changes for Aetna’s fully insured medical accounts. At that time, we said we would replace the “percent of paid premium” commission approach with a direct service fee model.
 
We have decided to delay the implementation of our new direct service fee model. This decision responds to questions raised by the California Department of Insurance (DOI) and the uncertainty created by the statutory changes to agent licensing that took effect January 1, 2011.
 
Please note that this decision does not affect producer compensation in any other state.
 
New broker compensation rates for large group medical accounts in California
For the time being, we will continue to use a commission model for large group medical accounts in California.  We are revising documentation for February 1 and March 1 policies and outstanding renewals to revert to the traditional compensation model. There will be no change in compensation you receive or the total amount paid by our mutual customers. 
 
Moving forward
Brokers will continue to play a vital role as an independent and trusted resource that can help customers make important health benefits decisions. Please feel free to contact your Aetna account manager or account executive if you have any questions.

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