Earlier this week, the Vermont Health Insurance Exchange, called Vermont Health Connect, announced details on their broker program and compensation rates. The proposal was released on their website on June 3, 2013. Public comments are being accepted through June 11, 2013.
Vermont Health Connect has proposed that health insurance brokers will receive a $15 per employee or individual, per month fee. Vermont is required by state law to change to the current broker compensation from a plan commission structure to a per employee per month (PEPM) structure.
Vermont Health Insurance Exchange - Broker Program Details
According to Vermont Health Connect, any broker who meets the following requirements can work with the Vermont Health Insurance Exchange. Individual brokers must have a valid Vermont Producers License with qualifications for Accident and Health, and:
Complete required Vermont Health Insurance Exchange training,
Register with the Vermont Health Connect website, and
- Sign a Vermont Health Connect Broker Agreement, which includes privacy/security and conflict of interest requirements.
Vermont Health Insurance Exchange - Broker Compensation
According to Vermont Health Connect, brokers will receive $15 per employee or individual enrolled in a QHP, per month in 2014. This is a flat fee regardless of family status (single, family, etc).
In 2015 and beyond, brokers will receive $10 per employee or individual, per month. The Vermont Health Connect states the rate is higher in the first year to recognize more work needed in the first year of operations (enrollments vs. renewals, etc).
Vermont legislative Act 171 requires that broker commissions cannot be built into the premiums for Qualified Health Plans offered on the Vermont Health Connect (VHC). It is for this reason the Vermont Health Insurance Exchange is planning for a PEPM fee structure.
Vermont Health Insurance Exchange - Broker and Navigator Training
According to Vermont Health Connect, brokers will complete the same training as Exchange Navigators and Certified Application Counselors. Vermont is working to ensure that training will qualify for continuing education (CE) credits as required by the Vermont producer’s license.
Vermont Health Connects states the training will include:
Affordable Care Act, Act 48 and Act 171
Vermont Health Connect structure
Needs of under-served and specific populations
Eligibility and enrollment rules and procedures
The range of QHP options
Privacy and security standards
Financial assistance and insurance affordability programs
Outreach and education
Conflicts of interest
Once a broker completes training, receives registration, and signs the Vermont Health Connect Broker Agreement, he/she is eligible and qualified to operate in the market. According to Vermont Health Connect, registered brokers can expect to receive referrals from interested parties through the Vermont Health Connect website and Customer Support Center, and will receive secure web access to client accounts and consumer assister content.