Service fee compensation changes for fully insured groups in Maryland, D.C. and West Virginia
- Plan Administration
- Fully Insured
- Select States
UnitedHealthcare will no longer include commissions in premium for the large group size segment in select states. In these states, UnitedHealthcare will collect the service fee from the customer bill and pay it directly to the provider as an optional service.
The company is moving to a non-commissionable basis for groups in the 51-or-more employer market for fully insured medical business. Self-funded, stand-alone ancillary and Stop Loss coverage are not affected by this transition. This change will be implemented for groups in the 51-employees-or-more employer market for new and renewing business starting on Oct.1, 2019, in Maryland, District of Colombia and West Virginia. Compensation for all new cases with effective dates on or after Oct.1, 2019, will be through a service fee. Existing cases will convert to a service fee on their first renewal date on or after Oct.1, 2019.
These changes are being made as part of a broader effort to expand transparency.