Answer to MLR

[ghealthplus]

Hi Everyone,

I have a solution (MY Opinion) to the MLR.

It seems we have Too Many Middle Men (IMO, FMO, etc).
If the Carriers would pay the Agents/Brokers more money not as earned say 20% or more then I know we would not need IMO, FMO, etc but this would cut out all the Middlemen.
So the Agent/Broker who does ALL the Work...Should make the Most Money. Question is Why don't the Carriers Do this?
I think if they did everyone would make more and solve this issue.

Any and all Replies welcomed. Looking for feedback. Thanks in advance.

 

[STIBROKER]

It seems we have Too Many Middle Men (IMO, FMO, etc).

But what will happen to them......come on ......they have a life style that needs to be preserved.......

 

[taterpeeler]

the carriers use the "middle man" to recruit... thats it without them they would then be forced to recruit and sing their praises for being the best carrier... they dont have the ability nor skill to pull that off

 

[redkee]

The "Middle Man or IMO" are the ONLY real agents; in the mind of the insurance companies.It will be interesting to see what happens with all this reform crap.

 

[leevena]

Two things are wrong with your idea.

Carriers use middle-men (GA's) as a way to reduce costs. For example, in California the carriers do not have reps calling on the small market brokers because it is too expensive. A carrier rep in California will cost the carrier about $85-100k before they write any business. Instead they use a GA (BenefitMall, Warner Pacific, etc.) instead. The GA is on a commission only arrangement.

The second reason is that the small group market is now a commodity. By 2014 there will be even less carriers in the market and the plans will be standardized. Add into this mix the technology now available for enrollment and the need for a broker is further reduced.

Keep something else in mind. The major carriers (Blues, United, Aetna, Humana, Cigna) are all for eliminating the broker costs/role, which is why they endorsed this via AHIP year or so ago.