Sierra Health and Life and United Healthcare of Nevada has stolen millions of dollars in renewal commissions from NEVADA BROKERS AND THEIR FAMILIES.in 2009 United Healthcare paid its CEO $102 million in compensation. Brokers may lose their bussiness, homes, cars, credit rating, children's education, marriages, ability to purchase health insurance, their health, and sanity the list goes on. Try living on 50% of what you are earning now, you won't be able to.
The Nevada Brokers have always been very loyal and supportive of HPN/Sierra Health. Sierra Health has always been Broker driven and Sierra would have never grown to be in a position for United Healthcare to complete the $2.6 billion acquisition without the Brokers hard work and dedication.
Brokers are self-employed and have contracts with insurance companies to sell their insurance products and to educate perspective clients. Once the policy is sold we are also required by contract to provide service to those clients for however many years they keep their policies. For these services we have agreed by contract to be compensated 10% after the first year and every year as long as the policy is in force. We relied on this agreement to make the investment necessary to prospect for clients to buy their insurance. SHL/HPN does not provide us with any help. Brokers pay for advertising which includes yellow pages, internet marketing, web sites, newspapers, direct mail, and a staff. Most successful Brokers spend thousands of dollars every month providing Sierra their clients.
We understand that compliance with Patient Protection and Affordable Care Act (PPACA) requires SHL/UHC to change our future commission structure; we don't have a problem with that. We can adjust the way we market and spend to do business according to the new commission schedule. We invested thousands of dollars to get the business we have because we had a contract and counted on renewal commissions to cover our cost. Some of the Brokers affected have had a contract with SHL/HPN for more than 20 years. No other major Nevada insurer deemed it necessary to steal the commissions that we have already earned.
THIS IS HOW THE ORIGANAL CONTRACT READS; The Company without prior notice may at any time and from time to time change the rate of compensation and alter any of the terms and conditions of this agreement. Any such change or alteration shall not affect the commissions for these plans and applications which are dated prior to the effective date of the change. Commissions for these and payment thereof shall continue to be governed by the terms and conditions of this agreement as existing prior to such change or alteration.
THIS IS HOW THEY STOLE MILLIONS; After the United Healthcare takeover Brokers received a letter and a new contract from Broker licensing saying that all writing agents must complete an updated Agent/Agency Agreement for United Healthcare. Failure to submit this paperwork could affect your commission payments. The Brokers had no choice, sign the contract or you won't receive your commissions. There is not one Broker who would have signed that contract if UHC had not threatened to withhold commissions. They stole millions by adding this one line in section 3.4 of the Agent/Agency agreement. UnitedHealthcare may terminate or amend any base commission payable to Agent with respect to any Enrolling Unit (regardless of original effective date of coverage by UnitedHealthcare) at any time by notifying Agent. Were not even talking about business written under UnitedHealthcare, we are talking about business written under Health Plan of Nevada and Sierra Health and Life.
They added this to the contract and used it. They didnt have to, but they did. This is a one-sided contract. The only right the Broker has under the new contract is they can cancel it. If they do, they would forfeit all past commissions. UHC can do whatever they want. They can change commissions at any time or not pay us at all. Does that seem fair or ethical?
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