A Positive Perspective to Health Care Reform?

[Central Coast Agent]

I've been reading this forum the last week or so, and it has kind of bummed me out a little...understandably with so much uncertainty about the future.

Below I make a suggestion that we may want to use this forum to share positive and productive ideas about how to move forward in HCR world. Here is why...

I'm a pretty new agent, been selling mostly IFP's and some group health for about 14 months now.

Thing is, I'm loving it. I REALLY like selling Health Insurance. February and March have been my best months so far, and I'm on track for a good April with a couple of medium sized groups.

Its a fun and rewarding job...I B2B and telemarket and meet a lot of nice people. I work for myself and don't have a sales manager hanging over my head. I get to help people. Cool.

I plan on staying around awhile...but if you read some of these posts...its like there is no tomorrow.

As a newer agent, I feel I may have a different perspective than what I've been reading on here from a lot of the old salts...while I respect their experience, I would like to share some thoughts:

I've been looking around the internet for signs of the demise of the health insurance agent, and I'm just not seeing it. If you read the articles and statements from national and local associations and industry op-eds, it seems uniform: We don't really know how this is going to play out, but regardless, there will be a place for brokers and agents in this new environment. Agents will have to adapt, and those that can, will survive.

GA communications have been upbeat if anything...most have also been about adaptation, not demise.

Since truly NOBODY knows what the new environment is really going to look like at this point, one can only guess...and it seems silly to get caught up in scenarios that may or may not play out.

So, this is how I'm looking at it. I'm going to TRY to not get too bummed out reading these posts. Focus on selling and take changes as they come. I might bone up on some other products and start cross selling now, so that I'm not starting from zero if the worst does happen. And if the worst does happen, as an insurance professional, here are just a few products I can switch to:

Life, CI, DI, Accident, Voluntary Benefits, Workers Comp, Auto, HO, Commercial Liability, D&O, Aviation, Marine...the list goes on, and each of them has agents who are making a good living selling them.

So, to put this to bed...yes, things are uncertain for health insurance agents right now, but its probably not the END of health insurance agents, at least for those that can adapt to the new environment, whatever that turns out to be.

And if the worst case scenario turns out to be, then there is a list of other types of insurance to sell. You don't even have to leave your industry (insurance), just switch gears...sell something else.

Yes, you may need a new license and/or some experience, and you can probably start on that now instead of reading end of the world posts...its easier than you think (except for E&O for P&C which seems to be in the $2500 range here in Cali).

I would like to suggest that we use this part of the site for something useful...to strategize and inform eachother instead of trying to guess what bad thing is going to happen next.

One last thing: Think about tax preparers. Anyone can do their taxes by picking up a form at the post office...or purchasing a software program, or going to a big firm like H&R Block. But there are thousands of tax preparers who are mom and pop shops in their area of town that do very well year after year...why? Because people PREFER to do business with someone they know and trust.

I don't see that same dynamic for agents changing in the future, regardless of HCR. Comp will change (not disappear), but if there is a need in the market, which there is, for people who can explain and humanize insurance, then there should be no shortage of opportunity.

Please reply with your constructive thoughts about moving forward in a post HCR environment. What are you going to do or how will you change your business to adapt...knowing what you know now?

 

[TXINSURANCE]

When you talk HCR you must divide into pre 2014 and post 2014.

Pre 2014 you are likely to see massive commission changes. Downward.

That being said carriers are loading up on ancillary. Accident. CI. DI. Term. Whole. You name it.

It is pretty clear ancillary will be essential to survive. If you are only making 5% on health premium of $300 that is $15 per month commission. However if you have a $100 in ancillary at 50% commission this would yield $65 per month.

This blended is higher than what most are getting now selling medical "naked".

Post 2014. No one knows.

 

[0b1kanobee]

I agree, nobody knows what the comps are going to be. Truth be told, I haven't seen many professions getting a pay raise as of lately. It is either no job at all, cut in pay or more hours worked for the same pay. It is all across the board.

To survive in any good industry you will have to stay positive, think outside the box, become more knowledgeable with other products so you can cross sell or find a real good niche market.

All I know is I haven't had anyone lately come up to me and say they just got a big raise or their boss said hey you are working too hard. It's tuff all over, so I agree, shoot for the best. You should already be cross selling I would think.

All this 2011 and 2014 stuff, best advice for someone like you is to ignore it. You are happy now and doing what you like so you are ahead of the game. Who knows, you may not or the world may not even be here in 2014 so live it up man! That is gonna be my new attitude. Stay positive and focussed.

 

[Central Coast Agent]

Very good point TX.

Curious to know if you or anyone out there has thoughts on what to focus on with Ancillary...there are dogs and plums with every offering...what works and what doesn't?

For instance, I can see a strong need for DI for pretty much anyone that does not get it from the workplace, but accident insurance...not so much.

Anyone have an opinion, and an idea of what would be a reasonable sales goal for your suggested product?

For instance, its reasonable to sell $1,000 in health insurance commission per week of your working. How about those ancillary products?

 

[0b1kanobee]

DI is nice for the right scenario. If you want to go big and do something not many are doing, go for long term care. I know an agent here in Florida that writes between 50 and 60 LTC cases each year. He has a huge book of business though. He started somewhere though.

 

[TXINSURANCE]

All this 2011 and 2014 stuff, best advice for someone like you is to ignore it.

I understand your point, but respectfully disagree.

You need to watch your dates and what is going to occur on those dates. 9/23/10 first day for new provisions such as GI on children, no annual caps, preventative, etc.,

1/1/11 - 80/20 MLR.

It is extremely important to know your dates and adjust accordingly or you might have a massive ROI situation.

Ancillary is getting ready for a massive explosion. I can hardly keep up with the products I know coming soon or in development. That part is exciting because compensation can range from 30% to 100% or higher depending on the products.

 

[0b1kanobee]

I agree TX

What I meant was mainly to stay positive. This whole thing had and sometimes still has me down in the dumps. I don't like to be down in the dumps so I am going to be as positive as I can.

Good points on your items to look for!

 

[Mr_Ed]

DI is nice for the right scenario. If you want to go big and do something not many are doing, go for long term care. I know an agent here in Florida that writes between 50 and 60 LTC cases each year. He has a huge book of business though. He started somewhere though.

Great point.

HCR bill has provisions in it that will significantly increase LTCi sales.

 

[moonlightandmargaritas]

DI is nice for the right scenario. If you want to go big and do something not many are doing, go for long term care.

Be careful about giving bad advice, "policy-pushing" is very rarely in the client's best interest!

For a person younger than 60, they should spend their available dollars on a good program of disability insurance before they ever consider LTCi.

Just good, basic financial planning advice.

 

[Crabcake Johnny]

The biggest positive for established agents is the commish structure getting reduced to a point where the "I need gas in my car" agents are forced out of the business.

We talk about how possibly 5% would really harm agents. It would but the irony is if 5% killed off most agents, that means most of the competition goes away.

5% would also likely mean the demise of the health insurance lead industry - unless they plan on selling leads for $1.50. And yes, that would also be good for established agents.