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Broker Update                                July 18, 2014
Producer service fee compensation: A great new opportunity for Coventry HealthAmerica producers
   
Producer service fee compensation (PSF) is a positive new process for paying our broker partners. It uses a Billing Services Agreement (BSA) offering you maximum flexibility to set the appropriate fee with your groups for the unique services offered by your agency. This change will become effective beginning with your Keep Your Current Plans renewals for November and December.
  
Health care reform has had a significant impact on the way we do business. A BSA removes broker commissions from the MLR calculations which allows us to sustain a viable broker distribution model.
  
The benefits to you include:
  
  • Controlling your compensation from customers (you are not dependent on changes made by the carriers each year)
  • Your fees reflect your services (e.g. charging for complex analytics)
  • Coventry HealthAmerica simple " One and Done" process

 

  • One rate (fee is not split out on the bill) One bill
  • One Check
  • One signed agreement

 

  • An active BSA may make it more difficult for other agents to take over our groups

 

Producer service fee compensation explained (also known as Broker Pass - Through)

 

  • Service fees must be agreed upon by the group and the broker. We are simply the administrator, "passing it through" as a service
  • Each group must have a BSA in place with you and Coventry HealthAmerica
  • The BSA only needs to be signed once per group
  • The service fee amount can be either a percentage of premium or a "per employee per month" (PEPM) dollar amount
  • Service fees cannot be paid until we have received a signed BSA (prior to the group's renewal date)

 

Your Coventry HealthAmerica account manager will contact you before the release of your renewals to discuss the program further and outline important timelines. The timelines must be adhered to for the capture of your service fee and the submission of the signed BSA's. It is critical that you work closely with your account manager before the renewal to make sure your service fee is captured accurately.

 

Coventry HealthAmerica values your contributions to our membership. We will continue to make every effort to deliver efficient and flexible operations so you can be most productive.

 

    

cvty_aetna
  

Coventry HealthAmerica
Of Pennsylvania
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