Carrier News

Aetna Reducing Small Group Commissions to 2%

Effective Nov 1, 2016, Aetna is reducing commissions on small group community rated (ACA-compliant) plans to 2% in Texas on new business cases.

  • The new commissions apply to new cases with an 11/1/2016 effective date or later.
  • The change does not apply to commissions on renewals.
  • It is unclear if the change will apply to groups that convert from Transitional Relief to ACA-compliant plans at renewal in 2017.

This is the latest change in a series of changes from Aetna over the last year. Aetna discontinued all PPO plans in small group effective 8/1/2016. Their current portfolio does not offer any plans that provide coverage to members living or working outside of Texas. Last year they attempted to eliminate broker commissions in favor of fee arrangements. CMS quickly issued guidance prohibiting such arrangements.

2% commission does not cover the cost of producing and servicing the business. The distribution strategy is unclear. If we receive more information we will share it.

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