UnitedHealthcare changes service fee compensation model in Idaho and Wyoming

UnitedHealthcare will no longer charge commissions as part of its move to a new service fee compensation model for fully insured medical business in the 51-100 eligible employees’ employer market.

Commissions will no longer be included in the premium rate, but instead UnitedHealthcare will collect the service fee from the customer bill and pay it to the service provider.

These changes apply for new and renewing business in Idaho and Wyoming. Compensation for all new cases with effective dates on or after Sept. 1 will be through a service fee, while existing cases will convert to a service fee on their first renewal date on or after Sept. 1. The transition will not affect self-funded, standalone ancillary and stop-loss coverage.

This transition is part of a broader effort by UnitedHealthcare to expand transparency, reduce administrative costs and align with the current compensation model in the 101+ eligible employees’ employer market. This model allows producers and their clients to negotiate directly for appropriate reimbursement for services provided.

For more information, please refer to the resources below or contact your UnitedHealth Representative.

Additional resources: