Agents Role After Reform

[bill3173]

If someone tells me that they are going to structure their business model to do very well in this environment, I dont have any quarrel with that. Many will fall by the wayside though.

Unfortunately, this is the most likely outcome. From the way things are going, I'd say there'd be nothing more than a nominal fee per application. Probably something too small to "structure" your business around. Just a little extra loot to complement your other insurance products.

Do agents get paid anything for signing up applicants in your state? In NC it's $100 and time consuming. Not complaining, it is what it is

 

[Bitnis]

How long do you figure we have before commissions get cut? And how do you see medicare supplements being affected. Are there any straws left to grasp at in health care?

 

[txagt39]

In the long run it will be a compounding issue where there is lower volume for agents and lower commission. Right now you have agents taking out their little calculators and thinking "well, if it is only 5% commission but guaranteed issue then I will take that any day of the week and just run around harder signing people up." Might be okay for a while, but since since the profit margins of carriers are being squeezed hard under Obamacare they will be working day and night to come up with sign up methods that do not involve agents, that is if the exchange doesnt do that quite nicely for them already.

Yup, we can go around and around on the "carriers will always need agents" and "the reform law does not eliminate agents" merry-go-round bit. I am not saying otherwise. I am just saying the combination of lower commission along with fewer sales going through agents rather than carrier or exchange-direct will have a negative multiplier effect.

Experience shows that many agents read this type of thing and then launch off into long rap about how people still need an agent even when there is guaranteed issue. Again, I am not saying otherwise. I am just saying you have to mix the lower volume piece in with the lower commission piece. If someone tells me that they are going to structure their business model to do very well in this environment, I dont have any quarrel with that. Many will fall by the wayside though.

You are absolutely correct. There is also a mandated law in every state that drivers are suppose to carry at least liability insurance - do they all comply? NO! And they won't with mandated health insurance either, those that want to abide with the law will, those that don't - won't and once again the brunt of the expense will fall to those that are responsible folks. We had a snap-on tool guy here that paid a lot to get his franchise, then the truck, the whole enchilada. He let a tool box slip and roll back on him, guess what - he couldn't find the money when he was sitting up his business plan for health insurance. So when he got hurt he had everyone in town taking up collections for him. WHY? If he didn't care enough to spend anything to protect himself, why is it then everyone else's responsibility as a humanitarian to come to his aid? It's not, that's the point. There are folks that prefer to drive a Cadillac Escalade at a ticket price of $69,000 but ask them to pay over 50 cents for health insurance or to go see a doctor and they throw an absolute hysterical fit - they feel they are entitled to "free" health care. There is no such thing as a free lunch - when will adults realize there is such a thing as taking personal responsibility - it's not the government's purpose to provide for every 3rd world country and every citizen's every need. Stop giving everyone unemployment benefits because they choose to change jobs like they change underwear - small businesses cannot afford to support the whims of this current administration - when enough jobs are lost and busiensses are closed maybe Hussein Obama will figure it out but of course by then he will have retired into history to count his money and write his books. FED UP doesn't begin to describe my feelings about OBAMA'S intentions, he wants to look good at anyone and everyone's expense. Folks you better wake up quickly - communism / socialism, whatever you want to label it - here we come.
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How long do you figure we have before commissions get cut? And how do you see medicare supplements being affected. Are there any straws left to grasp at in health care?

Do the math - Blue Cross already has their huge claim processing center here on the market for sale, quietly of course so not to ruffle any local feathers. They are preparing for Obama doom. If the big companies are already slimming in preparation, you know exactly what will happen, they will cut commissions even further. Remember when we use to get 10% on small group - now it's 5% - did your overhead go down 50%, mine didn't. On small groups we are working for basically free already. Get involved, support the efforts of NAIFA, contact your legislators, vote, do what you can to make a change or sit back, eat it, and shut up. NAIFA has folks in our corner working on our behalf but look at the membership numbers - pathetic. The freeloaders want those who do pay dues to cover it all for everyone else. Come on dudes get in the game if you want to be able to live off insurance commissions for long.
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Unfortunately, this is the most likely outcome. From the way things are going, I'd say there'd be nothing more than a nominal fee per application. Probably something too small to "structure" your business around. Just a little extra loot to complement your other insurance products.

Do agents get paid anything for signing up applicants in your state? In NC it's $100 and time consuming. Not complaining, it is what it is

Yes and yet you are still subject to E&O claims if you assist in the process and your name is on the application. Sounds fair doesn't it?

 

[Winter_123]

Do agents get paid anything for signing up applicants in your state? In NC it's $100

There isnt any market to be involved in, in my state. Anthem has the whole thing and they only use captives except for some leftover contracts with folks doing group sales. And because it is guaranteed issue people just sign up over the phone or the net anyway.

We have a failed public option that has gone broke. Anthem had it for a while and then even they dumped it and told the state to find someone else to run it. I guess for a while you could get some kind of pittance for signing someone up for that if you could get appointed through anthem. But the whole thing just belly-flopped so I never had anything to do with it. If you want to talk individual health in the state you can talk to some Mega agents I suppose but I basically I consider the market to be gone for agents. The state reforms killed it.

 

[Broker007]

My company will do more business than ever. Everyone has to have it people, EVERYONE. We're opening up a retail location in a mini mall to sell health insurance and we plan on making a pretty coin. This would not be possible in any other climate. Change is unavoidable, can your agency ride the wave?

 

[TXINSURANCE]

Health Insurance in a mall... Been tried before... Didn't work so well.

 

[Winter_123]

Health Insurance in a mall... Been tried before... Didn't work so well.

In guaranteed issue states, health insurance is an off-the-shelf product which is what it will look like nationally before long.

What works or does not work in one environment may be ideal or a complete failure in the next. Of course, even the retailers at the mall struggle to keep up with the online retailers. And so it shall be with health insurance as well even if it works at the mall.

 

[TXINSURANCE]

The mall is meant for TANGIBLE products of disposable income. Most people go to the mall to drop $200 , not to drop $200/mo on an invisible item with no perceived value.

 

[Winter_123]

The mall is meant for TANGIBLE products of disposable income. Most people go to the mall to drop $200 , not to drop $200/mo on an invisible item with no perceived value.

I do not disagree with thee. However, it is a principle of capitalism that we must adjust ourselves to what consumers buying habits become, not what we think they should be unless our marketing programs are so strong that we can change habits and trends rather than work with them.

Personally, I used to think that the internet was for chat rooms, spam, and buying pills for penis enlargement- and people should not be getting health insurance there or on someone's website. However, I live in a state where they do that everyday despite my knowing what is best for them. The same could happen at the mall- or not. Tis the nature of capitalism that things change and we must be nimble to survive.

Also, expect to see someone at the quick-care clinic next door to the insurance booth, even if malls are not meant for that either. (and as we know with guarantee issue, it will be handy indeed to have them located right next to each other, but I digress).

 

[moonlightandmargaritas]

There are folks that prefer to drive a Cadillac Escalade at a ticket price of $69,000 but ask them to pay over 50 cents for health insurance or to go see a doctor and they throw an absolute hysterical fit - they feel they are entitled to "free" health care.

While true, this shows not the absolute bare minimum of understanding human behavior. How long have you made a living selling insurance? Or have you?

Folks you better wake up quickly - communism / socialism, whatever you want to label it - here we come.

Like this is recent news?

Where were you a year and a half ago, when the bright among us saw this coming? Sticking your head in the sand, saying, "it'll never happen?"

Do the math - Blue Cross already has their huge claim processing center here on the market for sale, quietly of course so not to ruffle any local feathers. They are preparing for Obama doom.

If you speak of BCBSTX - they must not be too bright. Many of the Blue Cross companies (including the one here in Florida) make lots of money as TPAs for Medicare.

Get involved, support the efforts of NAIFA, contact your legislators, vote, do what you can to make a change or sit back, eat it, and shut up. NAIFA has folks in our corner working on our behalf but look at the membership numbers - pathetic. The freeloaders want those who do pay dues to cover it all for everyone else.

Hahahahahaha. NAIFA, as well as the vast majority of the trade organizations, are worthless-to-the-agents house organs of the big insurance companies. If you haven't learned this yet, let me give you a clue - they will sell you down the river in a hot minute. Take it to the bank.

Why do you think the "dues paying members" numbers are so pathetic? Cause you're smarter than everyone else?

You can "contact your legislators" til the cows come home. It won't make any difference. The only effective protest is on election day.