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Commission Schedule

Standard Commissions (Revised October 2003)

1 to 99 size groups Commission
*One subscriber group 2.85%
Agent package (2-10 enrolled contracts) 3.80%
Agent package (11-99 enrolled contracts) 4.75%
**Sponsored package (2-10 enrolled contracts) 4.75%
**Sponsored package (11-99 enrolled contracts) 5.70%

* If a one subscriber group terminates its association or chamber membership, the commission rate will decrease from 2.85 percent to 2 percent.


** Sponsored packages require enrollment through a Blue Cross Blue Shield and Blue Care Network of Michigan-approved chamber of commerce or association.


Individual Care Blue
(effective April 1, 2006)		 Commission
Nongroup
    Years 1 and 2 8%
    Year 3 6%
    Year 4 4%
    5+ 2%
Group Conversion 2.85%

100+ size groups* Commission
Enrollment 1/1/2004 and after 5.0% for the first $600,000 in annual premiums
1.5% for the next $400,000 in annual premiums
0.75% thereafter until renewal
Enrollment 1/1/97 to 12/31/2003 5.0% for the first $400,000 in annual premiums
1.5% for the next $600,000 in annual premiums
0.5% thereafter until renewal
Enrollment prior to 1/1/1997 2.5% for the first $250,000 in annual premiums
1.5% for the next $750,000 in annual premiums
0.5% thereafter until renewal

*This category consists of BCBSM Administrative Services Contract self-funded, experience rated or BCN groups with 100 or more enrolled contracts.


Visit Policies & Procedures for our policy on non-standard commissions.


Commissionable Transferring Groups* Commission
Enrollment 1/1/1997 and after 4.0%, 5.0% or 6.0% for the first $400,000 in premium, depending on the commission schedule in effect when the group was initially sold
1.5% for the next $600,000 in annual premiums
0.5% thereafter until renewal
Enrollment 1/1/1997 4.0% for the first $400,000 in annual premiums
1.5% for the next $600,000 in annual premiums
0.5% thereafter until renewal

* Consists of commissionable groups under 100 that transferred to the 100+ market.



Dental


New business dental enrollment 8/1/2008 and after

Group Type Enrolled Dental
Contracts/Dental
Premium		 Commission Rate
Area/Industry
ERS/ASC		 2-99 8.0%
100+ ERS/ASC Less than $50,000
Next $50,000
Next $400,000
More than $500,000		 8.0%
5.0%
2.0%
0.75%

Orphan Groups


The following commissions will be paid for contracts in which an agent is not currently commissioned, but servicing the client:


Small Group (under 100 enrolled contracts - effective June 1996)


Servicing Commission
Year 1 and 2 2.85%
Over 3 years 3.80%


Large Groups (over 100 enrolled contracts - effective October 2005)


Commission Schedule
First $250,000 in premiums 2.5%
Next $750,000 in premiums 1.5%
Thereafter until the commission renewal 0.5%

Visit Policies & Procedures for our policy on non-standard commissions.



Blue Rewards Program

Blue Rewards is a bonus program designed to reward agent performance and improve the quality and quantity of business written each year. There is a Blue Rewards program at both the agent and the agency level.


The program has three components:

  • Retention
  • Growth
  • Contract goal

The bonus payment for each component is based on the agent/agency classification:

  • Premier agents have a minimum of 1,200 BCBSM/BCN contracts at year end.
    • Retention bonus (5 percent of total paid commissions for 2006) if baseline contract count is maintained as of December 31, 2005.
    • New business bonus (10 percent of total paid commissions for 2006) on "New-to-Blue" contracts that exceed baseline contract count as of December 31, 2005.
    • Maintenance bonus (additional 3 percent of total paid commissions for 2006) if same number of contracts are maintained for the entire year and contract goal is met.
  • Preferred agents have 500-1,199 BCBSM/BCN contracts at year end.
    • Retention bonus (3 percent of total paid commissions for 2006) if baseline contract count is maintained as of December 31, 2005.
    • New business bonus (6 percent of total paid commissions for 2006) on "New-to-Blue" contracts that exceed baseline contract count as of December 31, 2005.
    • Maintenance bonus (additional 1.5 percent of total paid commissions for 2006) if same number of contracts are maintained for the entire year and contract goal is met.
  • Premier agencies have a combined total of 2,500 BCBSM/BCN contracts at year end.
    • Retention bonus (5 percent of total paid commissions for 2006) if baseline contract count is maintained as of December 31, 2005.
    • New business bonus (10 percent of total paid commissions for 2006) on "New-to-Blue" contracts that exceed baseline contract count as of December 31, 2005.
    • Maintenance bonus (additional 3 percent of total paid commissions for 2006) if the same numbers of contracts are maintained for the entire year and contract goal is met.