United Healthcare Non-producing External Distribution Channel (EDC) Agents
United Healthcare recently announced that they’re implementing a new annual agent sales production requirement. Beginning on June 25th, 2018 UHC will count sales with effective dates from July 1st through March 1st of each year. If an agent fails to meet minimum production requirements by the end of an annual evaluation period, the agent will be charged an administration fee and United Healthcare will move to terminate their contract for non-production.
Who is Affected?
An agent/agency is considered non-producing if, at any time during the evaluation period, they held an active contract and did not have at least one sale with an effective date of July 1st through March 1st.
This policy applies to EDC agents and agencies that are contracted at the Agent level, and that are deemed “Read to Sell” for remainder of the plan year and subsequent AEP and OEP. This policy does not apply to solicitors (Licensed Only Agents).
How does this policy affect GA, MGA, and FMO level agencies?
United Healthcare will charge an administrative fee to any non-producing EDC agent/agency that has an active contract during the evaluation period. After a period of 60 days, the agent/agency’s immediate up-line becomes liable for any unpaid fees for their immediate downlines.
What if I have an agent level corporation, does the policy and fee apply to both the principal and the corporation?
The fee will only be charged once. However, both may be terminated for non-production.
$150 fee for resident state
$100 fee for additional state
Maximum of $250 per agent per year
Agents and agencies that no longer want to market and sell United Healthcare Medicare products should consider terminating their contract and moving into servicing status. This protects their current book of business so they can maintain relationships with members and retain their renewals.
Agents and agencies that terminate their contract during the evaluation period may still be subject to the fee if they did not meet the sales requirement during the evaluation period.
I’ve been assessed a fee, but I have a recent application pending
If an agent wishes to avoid contract termination they must have one sale of any United Healthcare Medicare Advantage, Prescription Drug Plan, or Medicare Supplement product within 30 days of the termination notice. The administration fee will still apply.
Terminated for non-production
If an agent was terminated for no United Healthcare sales, but would like to sell with United Healthcare again, they must wait 60 days from the termination date and will be subject to possible contracting fees. After a period of 60 days, the agent/agency’s immediate up-line becomes liable for any unpaid fees.
Our goal at RB Insurance Group is to support your business so that you can perform at the highest possible levels! At RBI, we pride ourselves on our ability to help agents succeed in the Medicare market. If you would like help selling and marketing not only United Healthcare plans this year, call our office at 1-800-997-3107!
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