Covered Calif. Broker Payments Delayed by Data Problems

Some health insurance brokers who have helped consumers enroll in coverage through Covered California have faced significant delays in receiving their commission payments, the Sacramento Business Journal reports.

Details of Delays

According to the Journal, some brokers have not yet received their commissions because the exchange failed to properly transfer sales data to health insurance companies, which are responsible for commission payments.

Covered California spokesperson James Scullary said the exchange realized last December that information on brokers was not being entered or transferred properly.

Scullary said the problem was corrected "several weeks ago" and that the exchange is reviewing all submitted applications to ensure brokers receive proper commission.

Blue Shield of California officials acknowledged that some of its commission payments were delayed because of erroneous data. However, they noted that the insurer's commission payments already were behind schedule because of:

• A backlog of enrollment applications; and
• The requirement that health plans reconcile new-member payments with the health exchange.

Janet Widman, executive vice president of Blue Shield, said the company is aware of the problems and will ensure that brokers receive the payments they are owed "over the next few billing cycles."

Blue Shield spokesperson Steve Shivinsky said the insurer is working with Covered California to determine the "root causes" of the commission delays (Robertson, Sacramento Business Journal, 2/24).