Blue Shield of California (BSC) has recently gone through re-contracting between itself and its General Agent Distribution Network.  In an attempt to standardize operations and contracts, Blue Shield has decided that commissions earned on small group business will be paid by Blue Shield.  For AEGIS PACIFIC Insurance Service this change-over was initiated with the March 2003 Check Write.

Unfortunately all aspects of this change-over were not fully implemented and as a result some brokers may see some discrepancies in their commission checks.

For brokers with small and large group business with us, there appears to be three categories of payment.  First, some of you may have received checks from BSC with all of your business on that check and paid in full.  Second, some of you received checks from us with all of your business paid in full.  Third and perhaps the most confusing, you received checks from both BSC and AEGIS PACIFIC.

Please be assured that AEGIS PACIFIC continues to receive ALL premium and commission data regardless of who is writing your check or checks.  This allows us to monitor and audit your commissions.  This continues to be an issue of significant importance to you.  Currently, we monitor two different commission structures.  Besides the numerous flat commission values there are 4 graded commission structures requiring monthly audits.  We submit and/or track about 20 commission complaints a month with BSC.

Unfortunately, in a number of incidents already discovered, the BSC information and our information does not match.  In some instances the checks received from us indicated that BSC had paid commissions when in fact they had not. We believe this to be a result of incorrect installation of the business by BSC.  These installation issues were a result of past contracting parameters and group renewal installations mistakes.  As a result we understood BSC to be paying the commission and not us.  Unfortunately the monthly data from BSC does not yet include any payment information.

Our recommendation to all our brokers with small and large group business is to audit both checks and report any discrepancies to us.  We will correct them with BSC on your behalf.

Now for our IFP / Medicare agents who sell the BSC product line through us.  A number of you have received cancellation notices from BSC.  Please be assured that we regard this as a system mistake at BSC and are taking steps to correct it.  We value your business and understand how upsetting this letter must have been.  Please notify us immediately if you received one of these letters.  We want to verify that the system is correct for each agent and for each piece of business.

Many of you did not receive your monthly check from us.  This was because we did not receive commission on your behalf from BSC.  To make matters worse some of you received both a check and a cancellation notice, again this was a system problem for BSC.  We are working to correct all aspects of this problem and would be happy to discuss the progress.

We apologize for the confusion and inconvenience caused by what appear to be cavalier decisions to make these changes. We believe Blue Shield is working as diligently as possible to remedy each inaccuracy as soon as possible.

If you have any questions please call or to send an e-mail just Click Here

Thank You,