Agent's Role in the Exchanges

[scagnt83]

Don't you think you just laid it out perfectly? Horse s*#t it might be, but isn't that the future?

I will be dead honest, not being an agent, or having any insight into the field, doing some research, I was AMAZED that health insurance agents made so much money. You have to figure the insurance companies, govt, and policy owners would rather keep the money you guys make. That is almost the idea behind the exchanges, let people buy their own stuff in a "regulated" environment, cutting out "the middlemen" which are you guys.

So.......when everyone can easily get GI major medical, EVERY American is now a possible supplemental customer, hence where you guys come in.

You might want to do some more (real) research.

Health agents making a lot of money is news to most health agents!!

Commissions on HI are some of the lowest in the industry!!
And considering the work you have to do, and the headaches involved, its becoming more and more not worth it to sell HI.

Of course everyone else want to keep the money we would otherwise make (i dont believe the carriers feel this way)
But the fact of the matter, is that the average consumer does not know what their best insurance choice is.
So how do you suggest dealing with this issue??
Maybe a call center with qualified professionals giving advice??
But wait.... how will those people be paid??
Well obviously their salaries will come out of the revenues taken in by the company (ie: premiums).
My point, is that there will always be a middle man no matter what. Insurance is a complicated product that most people know little about.

And paying people in a call center a salary is much more expensive for the company than to pay independent agents a small commission.


When GI is implemented every american who has an exchange policy wont be able to afford supplemental!
It will be a choice, full health on the exchange, or a supplemental or mini med free of the exchange.

 

[HealthGuy]

I love the contributions to this thread, keep it up everyone.

 

[Dave020]

http://www.nahu.org/legislative/resources/1005Webportals.pdf

 

[CHUMPS FROM OXFORD]

The NAIC quickly acknowledged my email, and I commend them for that. They indicated they would "clarify the language" in the last sentence.

They did just that (see below) although I'm still not 100% satisfied with the wording. But it's a start...and again, I give them credit for acting so promptly.

SPECIAL SECTION: Health Insurance Reform

 

[tajitj]

Ok maybe "research" and "made so much money" were bad terms. I respect what you guys do, it is work I could never do.

But, it is inevitable that the consumers will become smart enough and carriers will develop marketing techniques in which individuals could buy their own insurance. Because of the independent status so many of you guys chearish, there really was not a large enough "special interest" group fighting for you in the whole healthcare debate.

If anyone was going to be sacraficed to the Federal govt gods, it was probably going to be you guys. In their little back room deals, they probably just figured they could eliminate your jobs and that was their so called premium decreases.

The insurance agent plays a big role in every small town in America. They are the staples of business and are involved in all the good things that happen locally.

When GI is implemented every american who has an exchange policy wont be able to afford supplemental!
It will be a choice, full health on the exchange, or a supplemental or mini med free of the exchange.

So if someone buys traditional on an exchange, they can't buy a supplemental plan. Are the standards going to be so high, the only plans allowed on the exchange will have to include all those benefits?

You tell me, you are the expert. I was under impression the supplemental market will be basically left alone and I figured when you subsidize the crap out of a families traditional policy, they might be ripe for a sales pitch on cheap supplemental that is not sold on an exchange. I don't think it is one or the other.

 

[Crabcake Johnny]

Until we have single payer, health insurance agents will be selling health insurance.

 

[HealthGuy]

Commissions on the cheap supplementals not sold on the exchange I'm sure will pay the bills. Yea right!

 

[TXINSURANCE]

HealthGuy it is possible depending on what products you sell and the commissions.

There is no doubt the ancillary market will boom in a post reform model.

 

[moonlightandmargaritas]

But, it is inevitable that the consumers will become smart enough and carriers will develop marketing techniques in which individuals could buy their own insurance.

Here's what you've left out of the equation...

The vast majority of my clients are small business owners that have neither the time nor inclination to do the research necessary to assure this - they are extremely busy running their business!

They are used to working with advisors that they trust. When I contact them to make a suggestion/recommendation, almost universally they say, "if you think it's in my best interest, go ahead."

This kind of trust is only built over time.

I'm not sure that the carriers can "develop marketing techniques" that match it.

 

[Crabcake Johnny]

I'll state again, they can go carrier direct now. In my state clients can go direct with 7 out of 7 carriers. Doesn't seem to harm my business.

If you think it's going to be less confusing in 2014, guess again.