Anthem Blue Cross 10% Commission Obamacare

[DS4]

This sudden ability for agents to cross sell other things amazes me a bit. It suddenly sounds so easy, makes you wonder why people weren't doing it all along.

Some of us 100% health sales only agents are too busy writing apps or working good leads to cross sell.
I have a boat load of senior med supp clients and I've never sold FE or LTC.
Any drop in revenue to some agents can easily be made up selling other products.

 

[nolaagent]

Does this new commission schedule from Anthem affect 1st year and renewal business that was on the books pre-2011 be affected?

 

[ABC]

I agree 100%

10% wipes out most health insurance agents who only sell individual health and work off internet leads. It's literally a 50% pay cut.

The dilemma then would be for producers who were actually earning six figures to drop to 50K instead of going back out into the work force. Some modest cross selling could put an extra 10K to 15K a year.

However, producers who were only earning 50K would likely not be able to accept 25K.

Judging from conversations I've had with "die hard" individual health agent who have tried other lines and failed, they would rather stick it out and try to make it work.

10% is right on the cusp of a "do-able" career. Less than 10%? Not a chance. There have been rumors of less competition and "better" internet leads. As there's already significantly less competition (based on my conversations, the field in general is down around 50%) I have not yet heard a single agent comment on how much more business they're writing due to either less competitor or "better" leads." In fact, to the contrary the comments I've heard are leads have never been worse.

But brace yourselves because in my opinion, a few carriers are going to get creative with new product offerings mainly designed to offer high agent compensation. Watch for it.

 

[SamIam]

From my viewpoint cross selling is easy but this comes from someone who stills sees people face to face. I have always cross sold and made good money doing it. But I don't sell over the phone or online.

 

[insurehound]

Do you all think the commission cuts will stop here? This is just the beginning...

 

[YouGotMyMoney]

Do you all think the commission cuts will stop here? This is just the beginning...

While that's possible, it has to stop here if they want business.

This is not NY where it's GI community rated for 5% commission, with no sales anywhere.

 

[Crabcake Johnny]

If carriers wanted to cut comp while still thinking they could gain business they certainly didn't need Obamacare. Why didn't carriers cut comp years ago to say 5%? Because they need business.

 

[VolAgent]

If carriers wanted to cut comp while still thinking they could gain business they certainly didn't need Obamacare. Why didn't carriers cut comp years ago to say 5%? Because they need business.

Wait a second, you mean this stuff doesn't sell itself?

 

[SamIam]

Once the Exchange happens say goodbye to the exchange. Look at Mass.

 

[insurehound]

While that's possible, it has to stop here if they want business.

This is not NY where it's GI community rated for 5% commission, with no sales anywhere.

That assumes that the insurance companies care about getting business from us - once 2014 arrives, they know that the Government will send a steady supply of people to them regardless through the Exchanges. Your services will no longer be needed.

...and once one carrier drops their comp. rates, others will follow either out of greed or necessity.
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SamIam...what does the agent get in Mass?