August 18, 2010

Reminder: Producer Commission Schedule Changes Planned [All Markets]
Commission Changes Not Retroactive

As you are aware, compliance with the Patient Protection and Affordable Care Act of 2010 (PPACA) is bringing about significant changes for Blue Cross and Blue Shield of Illinois (BCBSIL) and others in our industry.

Impacting BCBSIL and you is the PPACA provision that requires an 80 percent medical loss ratio (MLR) as of Jan 1, 2011.

While we are still awaiting regulatory guidance and completing analysis to determine the specific impact of that provision, it is now clear that changes to commission structures will be necessary. Details on the changes to the Regulated Small Group Markets commission schedule follow below.
 
This serves as notice from BCBSIL of upcoming changes to the commission structure for all Regulated Small Group Markets. Regulated Small Group changes will be effective Oct. 1, 2010. These changes are not retroactive and will affect only new business written on or after Oct. 1, 2010, and for existing small groups, upon the group’s renewal.

Updated Small Group Producer Commission Agreement Schedule
The Illinois Sales Group Producer Commission Schedule, effective Oct. 1, 2010, is now available. Please note that the Health commission rates for regulated Small Group business are changing to flat rate payment levels. The commission rate for non-regulated Small Group and BCBSIL Dental business is: 2-3 lives – 2%, and 4-150 lives – 8% Graded. Please note that Regulated Small Group “Employee+Spouse,” “Employee+Child” and “Family” policies sold will all be compensated at the Family Commission level. You will also find this schedule posted to Blue Access^® for Producers.

Individual/Under 65 Markets Changes
The upcoming changes to the commission structure for Individual/Under 65 Markets are not retroactive and will be effective Dec. 31, 2010. Specific details about those commission structure changes will be provided to you at a future date.

BCBSIL greatly values our relationship and your role in bringing our products to the marketplace. Your personal service is important to us and we truly appreciate your efforts.