INDIVIDUAL MARKET COMMISSION CHANGES

Over the last two years, enrollment in our individual product portfolio has been strong. We offered meaningful incentives and attractive price points, and with the performance of the producer community, we have dominated the individual market. As of June 30, 2015, Highmark's total ACA book of business is 378,995, noting we operate in Pennsylvania, Delaware and West Virginia. The Pennsylvania ACA membership is 258,381.

Despite exceptional enrollment results, claims experience has been far worse than expected. The plans we currently offer under the ACA resulted in losses of $318 million as of June 30, 2015. Losses of this magnitude are not sustainable. Highmark is making necessary adjustments to plan offerings for 2016 to ensure that we remain financially viable. We are committed to maintaining high-quality ACA plans in all of the 62 counties we serve in Pennsylvania.

The commission structure has been updated for 2016, effective with Jan. 1, 2016 renewals and new sales. This adjustment is temporary. Our clear goal is to stabilize the market and build the commissions back up as recovery and balance are achieved in the individual market. It is our intention to offer renewed opportunities for growth and restored commission levels in 2017. 

2016 commissions will be consistent in western and central Pennsylvania across all entities for the individual market. No override will be paid on individual business in 2016.
 

We appreciate your patience and loyalty through this challenging time.