United Health Care Service Provider Compensation Changes Announced for Fully Insured 51-100 Groups

In Wisconsin, we are moving to a non-commissionable basis for groups in the 51-100 employer market for fully insured medical business. (Self-funded, stand-alone ancillary and stop loss coverage are not affected by the transition.) This change will be implemented for Wisconsin situs groups in the 51-100 employer market for new and renewing business effective Jan. 1, 2017. Compensation for all new cases in Wisconsin with effective dates on or after Jan. 1, 2017, will be through a service fee. Existing cases in Utah and Pennsylvania will convert to a service fee on their first renewal date on or after Jan. 1, 2017.

This change impacts all 51-100 employer groups sitused in these markets. (Please note the service fee rules apply based on the group’s location, not the service provider’s location.) These changes are being made as part of broader effort to expand transparency and align with the current service fee compensation model in the 101+ employer market for these states.

The service fee model is currently in place in Iowa, Missouri, Utah and Pennsylvania for 51+ groups and 101+ groups in 23 additional states. More states will adopt the service fee method for groups with 51-100 employees throughout 2017. We will continue to communicate updates as additional markets are launched.

To learn more about the broker/service provider compensation changes, please contact your UnitedHealthcare representative and review the 2016 UnitedHealthcare Producer Compensation Producer FAQ.