Agent Bulletin
Volume 2, Issue 12: June 1, 2007

Agent Commission Update

Reminder: June Commission Payment Changes

In January, you received a new contract that was effective May 1, 2007. The commission check you receive this month (for May business) will reflect many of the following changes for the first time:

  • For all groups with fewer than 100 covered employees, PacificSource now pays a flat commission based on the following, with medical and dental commission being calculated separately. Group size is determined at initial enrollment and reviewed at renewal each year.

    Per Member Per Month (PMPM)

    Group Size

    Medical

    Dental

    SEHI Groups

    $14.04

    $3.51

    HIPAA/Non-SEHI Groups

    $8.25

    $2.12

    Large Groups with 99 or Fewer Employees

    $6.85

    $1.47

     
  • While the above flat PMPM will be reflected in your commission checks, the commission statements you receive in June and July will not list the total number of members in each group. Until this figure is added to our commission statements in August, you can determine the number of members by dividing the group's medical or dental commission by the PMPM figures above. If you need assistance interpreting your commission statement, you're welcome to contact our Agent Assistant by phone at (541) 687-7047 or toll free at (877) 657-9797, or via e-mail at groupsales@pacificsource.com.
     
  • You continue to have the option to receive your commission payment by direct deposit or mail. We encourage you to use direct deposit to receive your commission payment sooner.

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Upcoming Commission Process Changes

In January, we announced upcoming changes to our commission payment process to tie commissions to premiums received. At that time, we noted that these changes would apply to SEHI and individual policy commissions beginning in June 2007. However, we have postponed these changes. They will now be reflected in your August commission payment (for July business) for SEHI groups and individual policies, and at a later date for non-SEHI groups. The following is a recap of those changes:

  • Commission will only be paid after we receive at least 60% of the premium due for group policies, or 90% of the premium due for individual policies.
     
  • Commissions will apply only to premium paid and will be prorated based on the percentage of premium received. If additional premium is paid or reduced retroactively, the commission will be adjusted accordingly on the next commission check.

For example, if we received only 50% of a group's premium in July, your August commission payment would not reflect any commission for that group. If the group paid another 30% of their July premium in August, you would receive 80% of the total commission in September. If they paid the remaining 20% of their July premium in September, you would receive the remaining 20% of the commission in October.

Soon, you'll also notice changes to our commission statements and checks resulting from enhancements to our commission system. The upgrade will allow us to automate the commission process to reduce chances for human error, as well as to add more clarity and detail to our commission statements. Some of the enhancements to be reflected on commission statements include:

  • Indicating the number of members enrolled in a group
     
  • Specifying the basis for the commission (PMPM, PEPM, or percent of premium)
     
  • Indicating the amount of premium paid by the employer
     
  • Clarifying commission adjustments by noting the corresponding month. If the payment includes more than one month's commission for a single group, the statement will list each month's commission on a separate line.

Because we are transitioning our client data to the new systems in two phases, changes to our commission payment process will also take place in two phases. The new commission statement format will be used for commissions paid on most SEHI groups and individual policies beginning with the statement you receive in August 2007. Your other groups will make this transition at a later date. During the interim between these two phases, here's what you can expect:

  • Two commission statements monthly, within a few days of each other.
     
  • Two checks or direct deposits monthly, within a few days of each other.
     
  • Two sets of agency and agent numbers. You'll find your new numbers on your August commission statement.

Once we have transitioned all customers to our new systems, you will receive only one commission statement and check each month, and your old agent and agency numbers will become obsolete.

These changes will enable greater efficiency in processing routine business transactions, which will allow us to continue to provide exceptional, personal service to you and our other customers. We appreciate your patience with these changes and invite you to contact your PacificSource Marketing Representative or their Sales Assistant if you have any questions.

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PacificSource Honored for Oregon Domestic Partner Coverage Role

PacificSource was among five healthcare organizations honored with the 2007 Business Leaders for Basic Rights Award at the 14th Annual Oregonians Against Discrimination Business Leaders Lunch on April 18. We are proud to have been recognized by Basic Rights Oregon for our leadership in bringing healthcare coverage to domestic partners in Oregon. Thanks in part to our testimony and work with the Oregon legislature, families across the state can now benefit from this coverage.

Please see the March 14 Agent Bulletin for more information about our domestic partner coverage.

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Portland Office Welcomes Kristin Kennedy

PacificSource welcomes Marketing Sales Representative Kristin Kennedy to our Portland office. She works with brokers in the Portland metro area, and is responsible for sales and renewal business for groups of all sizes. “We are very pleased to have Kristin join us in Portland,” says Portland District Manager Dennis Reed. “She has great relationships with brokers in the Portland area, and is very involved with the Oregon Health Underwriters and the Children's Cancer Association. She is an excellent addition to our team.”

Agent Commission Update

PacificSource Honored for Oregon Domestic Partner Coverage Role

Portland Office Welcomes Kristin Kennedy

Our Performance at a Glance

Upcoming Community Events

 

  Kristin Kennedy Kristin Kennedy, Marketing Representative
Many of you already know Kristin, since she has been in the health insurance industry for a number of years. After graduating from Portland State University, her first position was account representative with Associated Administrators, Inc. Later, she joined Regence BCBSO and was responsible for renewing employer groups with up to 100 employees and providing account management. Following Regence, she became a sales executive for large groups with PacifiCare (UnitedHealthcare).

Kristin is active in OAHU and PAHU, and serves on the OAHU State Board. In addition, she has served with the Pacific Northwest Employee Benefit Conference (PNEBC) and is their current chairperson.

Kristin already feels right at home in our Portland office. “I'm excited to be at PacificSource,” she says. “It's a company that offers outstanding customer service and that is involved in the local community.”

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Our Performance at a Glance

To maintain service levels and customer satisfaction that are consistently among the best in our industry, we continually poll our customers and measure our performance on more than 50 operational processes. The data below represents reporting period averages for a few of those measures.

Customer Satisfaction for First Quarter 2007

  • Member satisfaction
  • Provider satisfaction
  • Plan Administrator satisfaction
  • Agent satisfaction
  • 96.13%
  • 97.23%
  • 99.02%
  • 98.25%

Key Service Measures for First Quarter 2007

Medical claims turnaround time

13.0 days

Medical claims accuracy as
a percentage of claims dollars

99.7%

Customer service phone answer speed

21.0 seconds

Customer service call abandonment rate

1.8%

SEHI proposal turnaround

97.7% within 2 business days

HIPAA proposal turnaround

91.7% within 5 business days

Large group proposal turnaround

99.3% within 10 business days

New clients–ID card turnaround

90.2% within 10 calendar days

New clients–plan materials turnaround

89.1% within 21 calendar days

These are just a few of the many operational metrics we assess continually to ensure that our service is top notch. If you'd like more information on our performance measures, contact your Marketing Representative.

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Upcoming Community Events

PacificSource is proud to sponsor Northwest community events that support healthy communities and health-focused organizations. We hope you will join us in supporting these events:

Alive After Five Summer Concert Series
June 5 – Sept. 26, Boise, Idaho

PacificSource will be the presenting sponsor of this summer's Alive After Five concert series, a popular tradition that draws nearly 3,000 spectators in downtown Boise each week. Our Boise representatives will be on site with wellness and fitness demonstrations, contests, and prize drawings.

15th Annual Vitality Run/Walk for Meals on Wheels
June 16, Eugene, Oregon

All ages can enjoy the 2- or 4-mile courses in Alton Baker Park on bike paths along the Willamette River. The run/walk benefits Meals on Wheels of Lane County. Subsidized meals are available to people over the age of 60 who are homebound due to illness or advanced age.

Waterfront Blues Festival
July 4–8, Portland, Oregon

Celebrate 20 glorious years of blues at the 2007 Safeway Waterfront Blues Festival on the grassy banks of the Willamette River in downtown Portland. Fireworks light up the sky on July 4. Workshops for all ages, jam sessions, films, and river cruises complete the celebration. All festival proceeds benefit Oregon Food Bank's work to eliminate hunger in Oregon and southwest Washington.

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“I'm excited to be at PacificSource. It's a company that offers outstanding customer service and that is involved in the local community.”
Questions? You’re always welcome to contact us!

Eugene
(541) 687-7047 or toll-free (877) 657-9797
fax (541) 485-0915
Troy Kirk, Vice President Sales and Marketing
Doug Sheffer, Eugene District Manager

Bend
(541) 330-8896 or toll-free (888) 877-7996
fax (541) 330-8948
John Wright, Bend District Manager

Boise
(208) 342-3709 or toll-free (888) 492-2875
fax (208) 342-4508
Dave Ewers, Boise District Manager

Medford
(541) 858-0381 or toll-free (800) 899-5866
fax (541) 858-0486
Fred Cornett, Medford District Manager

Portland
(503) 699-6561 or toll-free (877) 657-9797
fax (503) 697-1075
Dennis Reed, Portland District Manager

Manley Services
(541) 485-7488 or toll-free (800) 422-7038
fax (541) 681-8792
or toll-free (800) 575-1109
Stan Manley, President

Select Benefit Administrators
(503) 598-8908 • fax (503) 598-0197
Nancy Louris, President

Agent Bulletin is published by PacificSource Health Plans • Each issue is archived at http://www.pacificsource.com/for_agents_N.html
Copyright 2007 • PacificSource Health Plans • All rights reserved
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