what amount of commission chargebacks from appointed brokers is standard?

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Asked December 6, 2016

1 Answer


There have been some changes to these provisions, as of lately. It used to be that brokers in Minnesota got a commission charge back for helping clients get health insurance, irregardless of whether the person was new or not. Now, this has all changed.

As of next year, brokers won't be able to get a commission for helping out new clients. This move is only temporary, but it speaks volumes. This has been happening in other states, too, Minnesota is the latest state to get hit with this ruling. The main reason behind this choice is due to the failing market.

The state alone provides coverage for over 250,000 people. The market is right now hitting a low point. The state just can't pay the commissions it used to. The Affordable Care Act eliminating some of the pre-existing conditions has something to do with this ruling, too. These clauses used to be control a lot of the costs, within the state of Minnesota. With these exclusion gone, the commissions also go out the window.

The commission charge backs add up to about 6%, give or take a percent. By cutting the commissions the state can control the costs more. This also suggests that the competition just isn't there, especially in the individual markets. Brokers and agents both play vital roles in selling the insurance. With the lack of competition, there is lack of money and interest.

If you feel that your policy might be affected in any way, talk to your insurance provider. Also, if you are new to the coverage, you should talk to your agent first about the options, seeing as how the options will only be predominately in the HMO markets. HMO markets have tighter limits. This also saves money for insurance companies.

Answered December 7, 2016 by PageIns

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