1990 Pages Hits the Floor of the House

[djs]

My grading scale (A, of course being the best case scenario for us) First year and renewal...

A- 15 and 7
B- 12 and 5
C- 7 and 5
D- 5 and 3
F- 3.5 and 2

I have a feeling we're looking at c+.

I think you graded this on desired outcomes, not likely outcomes. I would start thinking a different way.

I assume carriers will be free to do whatever they want for agents, similar to now. Of course, for now, their hands are tied because if they don't pay the same as everyone else, they don't get the business.

I think the public option will come in with a flat rate per app, similar to most other government health plans (hopefully with a better payout though). This will probably be along the lines of Kaiser IFP, here is a check for $100, go away.

Carriers will be tempted to try the same thing. It will be interesting to see if they succeed. They may also try to base this on what they do in group, since group is frequently similar to what is proposed as required moving forward (as close as you get for now), which will be 7%-8%, new and renewal.

Now, keep in mind that the good thing about this is carriers should not be able to 'roll' their book every few years to try to get people to go through underwriting again, allowing them to raise premiums on those who can't change plans.

Based on the changes, health insurance sales will become very transactional. I'm hoping they adopt more of a P&C type model, where it is 10% new and renewal for IFP, but the agent has a bigger role in supporting the client. This would be my A+ scenerio.

Dan

 

[Crabcake Johnny]

Don't worry - read the report on how many people signed up in Mass. on the Connector website - then you'll see there's nothing to worry about.

 

[Winter_123]

It becomes a bit like selling med supps - there is not "bad" plan to keep people away from. We'd be walking them through the difference between the basic, premium, etc...plans.

I don't see any shortage of auto agents at around 10% comp? What's the average policy - around $150/mo?

Yup. In fact that is the point. People keep mixing in the "agents going away" thing when what is repeatedly being said is that it is a gamechanger. That does not mean it goes away. It meansit's a gamechanger. The med supp analogy is one that I have used many times. And the auto policies could be another. Those agents who can build a business based on stacking up a lot of small coins consistently will do well. Those who can't won't.

Lest we get lost along the way in regard to what peoples thoughts and views are, when the reforms come, I am planning on getting in bigtime or at least as a piece of the mix. Things are so bad and agents are so shut-out now it can only get better. I dont say that to be fece-ish. Only because I believe it is true. It will be a step up from where we are now in my state but it will be a considerable step down from the old way of doing business in some other states. Our mileage obviously varies from state to state.

 

[Crabcake Johnny]

Agents will not go away. The only way health insurance agents go away is with universal health care.

 

[CHUMPS FROM OXFORD]

"I think you graded this on desired outcomes, not likely outcomes"

Actually...I did base those numbers on likely outcomes. Keep in mind that the "A" option is not necessarily the most likely of the five choices...just the best for us. I still say the most likely is the "C" type option.

But I would be very happy with a 10/10 setup. Flat fees could be a disaster since turnover would be lower.

 

[Winter_123]

The only way health insurance agents go away is with universal health care.

We don't know that either. Even if we had medicare-for-all what would that mean? Supplements for all too? Don't know.

Or as in Canada, their critical illness business is booming to fill in the blanks there.

Don't know.

 

[djs]

But I would be very happy with a 10/10 setup. Flat fees could be a disaster since turnover would be lower.

I'd like the 10/10 setup, though I think it comes with more work on the agents side. Very similar to P&C, you'll have to process payments, deal with sweeps through trust accounts, actually issue policies, deal with clients claims, etc.

Since I'm a P&C agent primarily, I have the resources in place already to deal with this. No big deal. Good health agents do everything but deal with the cash, a change, but not as big a deal as one might think. Health agents who like to write the business and run would see a significant change in this scenerio.

The only way the 10/10 deal works (perhaps 12/7), is if the carriers can push administrative overhead work out to the agents. Since underwriting will change significantly, this likely will be done primarily by the agent, again, similar to how P&C works for personal lines stuff.

Yes, you could actually be printing the policy right in your office, id cards and all.

I might be dreaming a bit, but to me it is a very likely scenerio. We'll see how the comp plays out.

Dan

 

[TXINSURANCE]

The only way the 10/10 deal works (perhaps 12/7), is if the carriers can push administrative overhead work out to the agents. Since underwriting will change significantly, this likely will be done primarily by the agent, again, similar to how P&C works for personal lines stuff.

It's nice to dream.

Maybe in the short term, not long term.

Long term I see a $50 spiff in your future!

 

[JMO Fan]

CBO estimates the cost at just over $1 trillion. That's half a billion per page. What a waste of paper.

 

[djs]

It's nice to dream.

Maybe in the short term, not long term.

Long term I see a $50 spiff in your future!

I think all exchange products will be a flat rate. Can't see much of a way around that. $50 won't get anyone to pay the marketing costs to get people to enroll for the carriers though. Kaiser pays me $100 for an IFP per person, and I chuckle when I cash those checks. Ironically, since it takes so long to get them, I've long since forgotten they are coming, and then I think of it as 'free' money.

10/10 is a dream. I don't think it's unrealistic, but it requires some work shifting from carriers to agents, not unlike P&C carriers do. Of course, it would mean signing more government forms to have access to the secret medical records (not sure why you would need this actually), similar to how I access peoples MVR's now.

Dan