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February 19, 2016 at 11:12 AM
A big health insurer has given investors a peek at its distribution force strategy in a new report filed with the U.S. Securities and Exchange Commission (SEC).
The insurer, Humana Inc. (NYSE:HUM), said in its 2015 10-K, or official annual report for investors, that it ended with 1,600 sales representatives and about 1,400 telemarketing representatives. A year earlier, the company had 1,700 sales reps and 1,200 telemarketers.
The number of sales reps has fallen about 6 percent, and the number of telemarketers has increased about 17 percent.
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Humana said its sales and marketing channels also include an alliance with Wal-Mart Stores Inc. that lets it put Medicare Part D prescription drug plan sales reps in Wal-Mart stores.
The company used the same description of its broker commission practices that it used in its 2014 10-K.
Meanwhile, Aetna Inc. (NYSE:AET) gave no direct producer count or producer compensation numbers, but it says in its 10-K that its “selling expenses” category, which includes broker commissions and the variable component of its sales force compensation along with premium taxes, fell to 2.5 percent between 2014 and 2015, to $1.6 billion.
