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Commissions Eliminated for Newly Enrolled COBRA and Cal-COBRA Members

Nov 13, 2009

Revised Policy Issued December 22, 2009

COBRA commission guideline affects new Cal-COBRA enrollees only

In a previous letter and e-mail, Anthem Blue Cross notified you that commissions on newly enrolled COBRA members would be discontinued as of February 1, 2010. They have decided to limit this policy to Cal-COBRA commissions only, not all COBRA enrollees. This affects new Cal-COBRA enrollees, not Cal-COBRA enrollees already in force. Anthem Blue Cross will continue to pay commissions on Federal COBRA enrollees, as they understand the need to further study that issue separately.

These guidelines will be effective for Small Group on February 1, 2010, and for Large Group upon renewal beginning February 1, 2010.

Posted November 14, 2009
In an effort for Anthem Blue Cross to maintain a competitive position in the marketplace as well as to decrease administrative costs for their groups and members, beginning February 1, 2010, they will no longer pay agent commissions (and this will impact overrides, as well), for newly enrolled members that elect state and federal COBRA benefits.

Anthem Blue Cross will continue to pay commissions and overrides for currently enrolled COBRA and Cal Cobra members.
Anthem Blue Cross will be sending out a hard copy letter to agents (this mailing will also include the revised commission schedule) on Monday November 16, 2009, as well as an eblast on Monday November 23, 2009.

Again, this change will take place beginning with February 1, 2010 for newly enrolled COBRA members in all group business.

If you have any questions regarding this change, please contact your Beere & Purves Group Sales Representative.
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