Subpage Permalinks not working

I am having issues with permalinks. I have it set up in the permalinks page as “/posts/%postname%”. For regular pages – not posts – the links look like http://www.mydomain.com/pagename. For subpages, they are supposed to look like this http://www.mydomain.com/parent/pagename. All of the sudden, new (not existing) subpages want to link as regular pages (/pagename). How can I fix this? No matter what I do with the parent page setting or permalink, nothing happens.