Alternative to Selling Health Insurance?

[James]

That the one. I think it's been updated. Here's the current guide:
https://info.assurity.com/forms/PDFs/FullCI_ProdGuide.pdf

Rick

Thanks for the link

 

[TonyC]

Rick,

What do you mean "mandate coverage?"

How will this limit your commission?

thanks....

Tony
(newbee)

I'm concerned that our ability to earn a living selling health insurance is going to be severly limited in the future. California just about ready to mandate coverage which I believe will either force or allow carriers to cut our commission. When you need to buy something, you don't need to pay salespeople.

I've been looking at Critical Illness plans as an alternative. I understand that in England, this type of plan has great penetration. Perhaps when clients don't pay insurance carriers for health insurance, they are more willing to buy other plans.

I'm looking for feedback from people who have sold CI. Is it an "easy" sell. Do people see the need?

By the way, I'm not giving up on Seniors but would like to continue dealing with people who don't drool. Also, I have owned CI myself for 7 years.

Rick

 

[TonyC]

Rich, (or anyone else)

Please...I'm a newby and wanted to understand exactly what you were saying...

What exactly is the proposd mandate in CA....and how would it affect your commission?

Thanks very much...

 

[Dave020]

Under the proposed plan, everyone in CA (residents) would be mandated to carry health insurance, either individually or through a group.

Employers above 10 I believe would be required to provide health coverage to their employees or pay into a state pool to provide coverage if the employer chooses not to.

Individual coverage would likely be two-tiered, Tier A would be underwritten coverage with lots of choice and flexibility, Tier B would be guaranteed-issue state mandated plans for those who cannot pass underwriting.

Providers would be required to pay something like 4% of either revenue or payroll to a new tax to help fund the mandate.


For agents, our commission might be reduced to account for the state mandate the all health insurance use at least 85% back towards health care. Carriers will have to reduce certain expenses, including probably commissions, to meet the 85% or better rule.

Dave
The David Fluker Health Insurance Agency - Gilroy, California - Serving California Residents Since 1995

 

[somarco]

If CA is no longer a viable market, you have 48 other states to ply your trade.

(Georgia is already spoken for . . .)

 

[TonyC]

Actually....i am more concerned that other states will Follow.

Ca. and NY have always been leader states....others may follow...

 

[somarco]

In case you haven't noticed, MA is still struggling with their mandate. Of course if you want to see what happens when states get crazy with over-regulating the health insurance industry, just look at the states with mandated guaranteed issue.

If the working public is disenchanted with the cost of health insurance now, just wait until (if) the states go wild and really screw things up.

 

[newmindfashion]

Dave020,
Unless I'm missing something, that scenario wouldn't appear to put health agents out of business. Sounds workable from a free market point of view.

 

[SC Local LAH Agent]

Mass is manditory health insurance also a guaranteed issue state. The fine for not having health insurance is $200 much cheaper than any yearly premium. Also agents I know there get the same comissions as everywhere else. Don't worry yet.

 

[Dave020]

Dave020,
Unless I'm missing something, that scenario wouldn't appear to put health agents out of business. Sounds workable from a free market point of view.

From agent's perspective, I suspect the only real impact on agents would be a somewhat reduced commission schedule...maybe. Since the enactment would likely require insurers to use at least 85% towards health care costs (most are using a bit lower than that) it may happen that our compensation takes a slight drop on standard business. Other than that it is fully workable.

I am pretty much already doing all of this, most of what I write is GI anyway and I don't get 20%/10% commission on that business, closer to 5% steady which is probably what it would be dropped to anyway.

Dave
The David Fluker Health Insurance Agency - Gilroy, California - Serving California Residents Since 1995