Broker Compensation Increased
Good news for brokers in the 2-50 market!
As a direct result of feedback from the broker community, CareFirst BlueCross
BlueShield (CareFirst) has made some important changes in the compensation
package that will directly benefit many of our brokers.
On June 1, 2002, CareFirst increased broker compensation by 5 percent
for all contracts in the 2-50 group market. This increase is on top of
the 5.5 percent compensation gain that went into effect for brokers on
January 1, 2002.
Brokers will also benefit because the compensation increase will directly
affect the persistency bonus, raising it by another 5 percent, since the
persistency bonus is directly related to the amount of commissions paid.
A new, graded scale has been developed for the persistency bonus that
will make many more brokers eligible for that bonus payment (this is in
addition to the per contract payout).
A new business bonus program for new contracts sold in the 2-50 segment
of the market was also implemented on June 1, 2002. This bonus will be
effective through December 31, 2002. Look over the information below to
see the many ways the bonus program can benefit you.
NEW 2002 Compensation Schedule For Brokers in 2-50 Group
Market
| Maryland |
2001 |
2002 |
Effective 6/1/02 |
| Indemnity Medical |
$15.00 |
$15.85 |
$16.65 |
| HMO Medical |
$13.00 |
$13.70 |
$14.37 |
| Rx Card |
$3.80 |
$4.00 |
$4.20 |
| Vision |
$1.50 |
$1.60 |
$1.60 |
| Dental |
$1.50 |
$1.60 |
$1.60 |
|
| Washington,
D.C. |
2001 |
2002 |
Effective 6/1/02 |
| Indemnity Medical |
$14.00 |
$14.75 |
$15.49 |
| HMO Medical |
$13.00 |
$13.70 |
$14.39 |
| Rx Card |
$3.40 |
$3.60 |
$3.78 |
| Vision |
$1.10 |
$1.15 |
$1.15 |
| Dental |
$1.10 |
$1.15 |
$1.15 |
|
 |
Commissions on medical coverage has increased by 5 percent since
January, 2002. |
|
Compensation on medical coverage has risen approximately 12 percent
since January, 2001. |
|
New Persistency Bonus -
Effective June 1, 2002
|
| Persistency
Rate |
Bonus Payout
Rate |
| 90 percent |
100 percent |
| 85 percent |
80 percent |
| 80 percent |
60 percent |
| 75 percent |
50 percent |
|
|
| The graded scale will better compensate brokers who are able to
achieve a high rate of success in business renewal. |
|
New Business Bonus for 2-50 Market - Effective
June 1, 2002 through December 2002 effective dates.
|
- This bonus is for new contracts and will be paid at $25 per
contact.
- Prerequisite for bonus requires that the broker sells a minimum
of 50 new contracts during this 7-month period.
|
| The graded scale will better compensate brokers who
are able to achieve a high rate of success in business renewal. |
| Example: Broker A sells new
groups with a total of 200 new contracts from June 1, 2002 through
December 2002 effective dates. The new business bonus will reward
the broker with a $5,000 bonus (200 x $25). |
Example: Broker B sells new
groups with a total of 35 new contracts during the same period. Broker
B is not eligible for the new business bonus because the minimum requirement
of 50 new contracts has not been met.
|
