2011 80% MLR's

[ghealthplus]

Does anyone know How the 80% MLR's will affect our comissions in 2011? Should we look to get into other lines of business besides Health Insurance? Or is this going to affect the entire Industry of Insurance? Should we move into a New Industry? Looking for all good advise. Thank you very much.

 

[0b1kanobee]

This is news to us. What on earth are you talking about lol

 

[GreenSky]

I'm pretty sure it will cause our commissions to rise.

Rick

 

[TXINSURANCE]

I'm pretty sure it will cause our commissions to rise.

Without question... I heard some carriers are considering 60% level for 6 years.

 

[0b1kanobee]

Lots of agents are getting out of the business because it will push them into too high of an income tax bracket with all the high commissions to be expected.

 

[TXINSURANCE]

Lots of agents are getting out of the business because it will push them into too high of an income tax bracket with all the high commissions to be expected.

They will also lose their health care subsidy in 2014 when the exchanges are launched. It's a big problem.

 

[Crabcake Johnny]

My local BX just announced that all producers will be receiving a company car.

 

[moonlightandmargaritas]

Does anyone know How the 80% MLR's will affect our comissions in 2011?

"We've spoken with several of the biggest individual insurers, including some of eHealth's largest customers, and there is unanimous agreement" that broker commissions are heading lower. "Rarely do we have such conviction in an idea, particularly when the potential downside is so significant. We think commissions will fall 30% or more next year."

eHealth: Oppenheimer Sees Hit From Cap On Insurance Costs - Tech Trader Daily - Barrons.com

 

[GreenSky]

"We've spoken with several of the biggest individual insurers, including some of eHealth's largest customers, and there is unanimous agreement" that broker commissions are heading lower. "Rarely do we have such conviction in an idea, particularly when the potential downside is so significant. We think commissions will fall 30% or more next year."

eHealth: Oppenheimer Sees Hit From Cap On Insurance Costs - Tech Trader Daily - Barrons.com

I stand corrected. My impression is that we would making more money. Next you'll be telling me that I won't get 20% for enrolling people into ObamaCare.

Rick

 

[Crabcake Johnny]

Anything that reduces comp makes it good for the agents who stay since many would blow out. Many.

At 20% comp, a 30% reduction on Jan 2001 means 14% - but there's no GI, no mandate, and no subsidies. That would toast a significant percentage of agents.

The upside is there are many agents working on that comp structure currently. Most seasoned agents in MD only write Carefirst at $18.50 per month per app. They work volume.