Fee for Service

[Guest lmmangrum]

Has any changed their benefit arrangement from a traditonal compensation structure to a fee for service? If so, what does the fee usually run? Is there a "measuring stick" say of 10% as used in the P&C world? Any assistance, or resources is greatly appreciated.

[GBurns]

I do not understand your issue.

I thought that the P&C 10% etc was commission rate not fee structure.

In my experience compensation is as per and provided by the insurance companies or claims administrators not by the Plan Sponsors, although in large enough plans that are bid, the PS can try to limit the amount of compensation that will be paid to agents etc. This compensation is usually a commission % although in self insured plans it is often a $ per head compensation rate, but still not a fee structure.

Fees that I see paid by Plan Sponsors have nothing to do with the compensation paid by the providers, whether self insured or fully insured and sometimes are paid in addition.

There are some states that require a different license if there is a fee structure since fee structures are usually caused by consulting as opposed to compensation caused by selling. Fee = consultant. Commission = Sales Agent/Broker.