Health insurance agents who sold Affordable Care Act coverage from Friday Health Plans had something to be thankful for as they received their back commissions from the carrier on the day before Thanksgiving after not receiving payment since August.
Tracy Faigin, Friday Health Plans chief marketing and experience officer, told InsuranceNewsNet today that the company paid commissions for September and October on Nov. 23.
"We plan to release November and December [commissions] roughly a few weeks after each month’s close," she said. "Commissions were delayed due to some changes we made on the accounting side of the business. We appreciate everyone’s patience while we went through that process."
Agents said they hadn't been paid commissions from Friday Health Plans since that carrier was ordered to exit the Texas health insurance marketplace earlier in November. The Texas Department of Insurance ordered Friday Health Plans to stop offering health policies for 2023 on that state’s Affordable Care Act marketplace, although the carrier continues to offer off-exchange plans.
Friday Health Plans’ delay in paying commissions is the latest in a long series of issues with health insurance carriers not paying agent commissions for plans sold in the ACA marketplace. Agent associations such as Health Agents for America have been vocal in their fight for their members’ ability to get paid for serving their clients. HAFA members have told Congress and federal regulators about their ongoing concern with many carriers not paying commissions to agents for new enrollments or enrollments during special enrollment periods under the ACA.
Ronnell Nolan, HAFA president and CEO, told InsuranceNewsNet her organization's members confirmed to her that they received their commissions from Friday Health Plans last week.
Susan Rupe is managing editor for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at [email protected]. Follow her on Twitter @INNsusan.