Sharp Health Plan Small Group Broker Bonus Program Overview
Explore Sharp Health Plan's strategic approach to incentivizing small group brokers with bonus commissions and targeted bonus programs to drive sales growth. Review the different bonus options offered and their potential impact on broker performance.
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Presentation Transcript
Small Group Broker Bonus - 2024/25 Don Truong
SG Broker Bonus Commissions Q4/Q1 Overview: Sharp Health Plan currently offers a base commission of 5% for both first-year and renewal sales, which aligns with the market standards. While our previous bonus programs have not significantly driven new sales, the competitive landscape indicates that almost all other carriers offer some form of bonus incentive. Introducing a targeted bonus program could help stimulate sales, particularly among independent brokers who directly benefit from such incentives. Growth Goal for 2024Q4/2025Q1: 500+ Subscribers Sharp Health Plan | Confidential not for public distribution Sharp Health Plan | Confidential not for public distribution April 4, 2025 2 2
SG Broker Bonus 2024/2025 Commissions and Bonuses (Commissions are consistent at 5% for 1styear and renewals for all carriers) Carrier Bonus Aetna Dec 2024 1- 74 newly enrolled employee ($50) and 75+ newly enrolled employee ($100) Anthem No bonus currently Blue Shield Jan 2025 $100 per Tandem PPO member and $50 for all other members Covered CA - Jan 2025 $1,000 to $12,000 per group depending on size (ex. three 6+ groups = $1,500 each) Health Net Jan 2025 6% commissions for 6+ subscribers Kaiser No bonus currently United Healthcare Dec 2024 $60 per new employee Sharp Health Plan | Confidential not for public distribution Sharp Health Plan | Confidential not for public distribution April 4, 2025 3 3
SG Broker Bonus Commissions Q4/Q1 Option #1: Implement a simple and straightforward flat bonus program, similar to UHC approach. Newly Enrolled Subscribers: 1-100: $50 Total Cost: $25,000 approx. While this method could be implemented with ease, it does not provide incentives or motivation for brokers to increase sales of SHP, nor does it offer incentives for brokers/groups with more than six subscribers. Sharp Health Plan | Confidential not for public distribution Sharp Health Plan | Confidential not for public distribution April 4, 2025 4 4
SG Broker Bonus Commissions Q4/Q1 Option #2: Implement a bonus program that increases the base 5% commission for 6+ groups, similar to HealthNet s approach. Newly Enrolled Subscriber: 6-100: 6% commission Total Cost: $42,000 per year (approx.) This strategy would incur the greatest expense for SHP, but it could be the most appealing to brokers, particularly for larger brokerage houses that might not distribute flat bonus revenues to their house agents. Additionally, it could lead to an increased workload for our internal team in terms of monitoring and implementation. Sharp Health Plan | Confidential not for public distribution Sharp Health Plan | Confidential not for public distribution April 4, 2025 5 5
SG Broker Bonus Commissions Q4/Q1 Option #3: Implement a tiered bonus program for overall performance from 10/1 1/1. Newly Enrolled Subscribers: 10 - 19: 20 - 29: 30 - 39: 40 - 49: 50 - 74: 75+: Total Cost: $43,750 approx. ($50 40%, $75 20%, $100 15%, $125 10% $150 10%, $200 5%) $50 $75 $100 $125 $150 $200 This bonus strategy employs a tiered system that carefully considers the cost to SHP, internal processes, perceived value, and the motivation for brokers to increase membership. Additionally, this method reduces financial commitments to brokers who might have secured business with SHP even in the absence of incentives, as there is no reward for fewer than 10 enrollees. Sharp Health Plan | Confidential not for public distribution Sharp Health Plan | Confidential not for public distribution April 4, 2025 6 6
SG Broker Bonus Bonus Results Q4/Q1 Overview: Sharp Health Plan | Confidential not for public distribution Sharp Health Plan | Confidential not for public distribution April 4, 2025 7 7
SG Broker Bonus Commissions Q2/Q3 Overview: Sharp Health Plan currently offers a base commission of 5% for both first-year and renewal sales, which aligns with the market standards. While our previous bonus programs have not significantly driven new sales, the competitive landscape indicates that almost all other carriers offer some form of bonus incentive. Introducing a targeted bonus program could help stimulate sales, particularly among independent brokers who directly benefit from such incentives. Growth Goal for Q2/Q3: 300+ Subscribers Sharp Health Plan | Confidential not for public distribution Sharp Health Plan | Confidential not for public distribution April 4, 2025 8 8
SG Broker Bonus Commissions Q2/Q3 Option #3: Implement a tiered bonus program for overall performance from 4/1 9/1. Newly Enrolled Subscribers: 10 - 19: 20 - 29: 30 - 39: 40 - 49: 50 - 74: 75+: Total Cost: $43,750 approx. ($50 40%, $75 20%, $100 15%, $125 10% $150 10%, $200 5%) $50 $75 $100 $125 $150 $200 This bonus strategy employs a tiered system that carefully considers the cost to SHP, internal processes, perceived value, and the motivation for brokers to increase membership. Additionally, this method reduces financial commitments to brokers who might have secured business with SHP even in the absence of incentives, as there is no reward for fewer than 10 enrollees. Sharp Health Plan | Confidential not for public distribution Sharp Health Plan | Confidential not for public distribution April 4, 2025 9 9
