Opportunity alert: Producer service fees for small group businesses in Delaware, Pennsylvania and West Virginia
Applicable to 1-100 businesses in DE, PA and WV:
You will soon have greater control over your compensation. Producer Service Fee (PSF) is a simple compensation process that we have been using as a company for years. We've seen positive results in other markets with renewal and 100+ medical cases. And beginning with July 1, 2015 effective dates, PSF will be the compensation model on all 1-100 DE, PA and WV Coventry and Aetna new and renewing business.
Greater control by charging for your services
A default, illustrative PSF, shown as a percentage of premium, has been set for each state and is similar to the standard commissions currently being used.
Effective 7/1/15, our default small group (1-100) PSF rates are as follows:
- Delaware = 5%
- Pennsylvania = 5%
- West Virginia = 4%
Quotes obtained from our self-quoting tools (QRS and Health Connect), our rate cards, Aetna generated quotes by our quoting team and renewals will be issued with the state defaults included in the rates beginning with 7/1/15 new and renewing business.
You have the option to maintain the default fee or determine a fee that matches the unique services you offer to your client.
PSF and Billing Collection Agreement (BCA), also referred to as Billing Service Agreement (BSA) for Coventry, let you:
- Control your compensation and set the fees that reflect your services (e.g., charging for complex analytics)
- Take advantage of Aetna's simple "one-and-done" process:
- One rate
- One bill (fee is not split out on the bill)
- One check
- One initial form to sign
PSF is easy to manage
There are just a few simple steps to get started with PSF. Here's how:
- Agree with the group on service fees. We're simply the administrator passing it through as a service.
- Accept the default or modify the fee to your choosing.
- For Aetna, use the link from EchoSign that is e-mailed to you in order to sign the BCA on each case. EchoSign will send the BCA to your customer to sign prior to their effective date. Please notify them to look for the EchoSign e-mail.
- For Coventry, the BSA will be provided to you by the new business unit or account executive.
- For both Aetna and Coventry, it's important to get the document signed by all parties because we must have it to pay the service fee to you.
- For new sales, the BSA or BCA is required at sold case submission.
- For renewals, the BSA or BCA is due five days before renewal effective date (if not previously submitted).
- Click to view a sample BCA for Aetna and a sample BSA for Coventry
Coventry HealthAmerica
If quoting Coventry 1-100 new business through Benefit Express, you will have the option to add your producer fee to the quoted rate. If the group is submitted to quote through one of our new business units, without requesting a specific fee, the quote will default to the state's percentage of premium.
For existing Coventry business, your client or account manager will contact you to confirm the producer service fee to be included in the renewal rates.
Important Notes: You and your client will be required to sign a BSA or BCA on every case to either acknowledge the fee included or alter the fee.
Once a BSA or BCA is signed, it does not need to be re-signed unless the amount of the PSF changes or there is a new Broker of Record.
Delaware state SHOP quotes will not include a PSF default.
We value your contributions to our members. And we'll continue to make operations as efficient and flexible as possible so you have more time for your business. Please contact us if you have questions about Producer Service Fee compensation.
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