Update on the prospective WellCare purchase of individual standalone Aetna Part D “PDP” plan
FOR AGENT USE ONLY
October 14, 2018
Dear Agents and Brokers,
The letter is to provide you additional information to keep you updated on the prospective WellCare Health Plans Inc. (WellCare) purchase of our individual standalone Aetna Part D “PDP” plans.
We understand and value your relationships with your Aetna standalone Part D clients. We want to make it easy for you to continue to serve them now, as well as during and after their transition to WellCare. As part of our commitment to help you support your clients’ PDP needs, you will receive periodic communications with updates and guidance.
We understand you may have some concerns about how these proposed transactions may impact you as an agent/broker or agency partner. Our number one priority is to make this transition completely transparent and as seamless as possible for both you and your members.
WellCare and Aetna have entered into an Administrative Services Agreement (ASA) during a transition period for all of 2019. Assuming the proposed transaction is consummated, WellCare will own Aetna’s individual standalone PDP plans in 2019. However, for the 2019 plan year, Aetna will continue to assume the same administrative services (e.g. enrollment, billing, claims & appeal processing, customer service, broker/sales) that we have historically provided for those PDP plans covered by the divesture, except that WellCare will become responsible for Compliance oversight.
To ensure transparency, below is some key information for you to consider:
On January 1, 2019, WellCare will be the owner of the Aetna individual standalone Part D products. From a compliance perspective, agents must be appointed with WellCare as WellCare will be responsible for the agent commission program. WellCare will begin appointing agents for WellCare PDP via the states’ department of insurance. Appointments will be completed by December 31, 2018. At this time, no action from you is required.
Contracting and Certifications for 2019 AEP/Plan Year:
If you are currently contracted and certified with Aetna, you are eligible to market/sell 2019 Aetna individual standalone Part D products. Next year, agents will be required to complete contracting and certifications with WellCare for 2020 AEP. Please be on the lookout for communications from WellCare regarding contracting/certifying with WellCare for 2020 AEP.
For the 2019 plan year, WellCare will recognize the current hierarchal structure in place per your contract with Aetna. Please be on the lookout for future communications from WellCare regarding required hierarchy changes for plan year 2020.
Initial Commission Payments:
For new Aetna individual standalone Part D business written in 2019, Aetna will administer payments per the rates and timing aligned with your current Aetna contract. Beginning plan year 2020, agents will be paid per the WellCare commission program. All cycle year one, individual standalone PDP enrollments are paid the maximum fair market value per CMS guidelines.
Renewal Commission Payments:
For 2019, in accordance with your current contract terms, Aetna will continue to pay renewals for members who remain active with the Plan in an individual standalone Aetna Medicare Part D Plan. Beginning 2020, WellCare renewal commissions will be paid per the WellCare contractual process:
Not appointed with Aetna? Request details here