CA Commissioner Throws Health Agents Under the Bus

Crabcake Johnny

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During a conference call with members of the National Association of Insurance Commissioners on Tuesday, California Insurance Commissioner Dave Jones (D) said the aggregate insurance broker compensation at four of the five largest health insurers in the state has risen from $5.8 million in 2000 to $168 million in 2010. However, he said that similar data have not been compiled by other states, noting that such information could be useful as NAIC determines its position on federal legislation (HR 1206) that brokers say could protect their jobs. Jones was the only committee member to vote against moving forward on an internal NAIC report that looked at ways to address broker commissions.

Read more: Dave Jones Weighs In on Insurance Broker Issue - California Healthline

Dave Jones Weighs In on Insurance Broker Issue - California Healthline
 
There's no chance in hell broker comp has gone up 2500% over 10 years, unless sales have as well (or close to it) for those same carriers.
 
Jones is a socialist, period.

He's perfect for the idiots in CA.

I'm glad he's focused on health. Will give me the opportunity to write more LTC before he destroys that market here as well.

Wonder if life insurance is safe from this ***'s talons?

Rick
 
There's no chance in hell broker comp has gone up 2500% over 10 years, unless sales have as well (or close to it) for those same carriers.

I strongly disagree with Jones and what he is doing. But regarding the broker comp, he may be correct...or at least close. Base year is 2000 and he is using "4 of 5" largest carriers. Since 2000 a couple of things have happened in California; 1) Kaiser had just started paying brokers, 2) many carriers went out of business and sold their blocks to the bigger carriers, 3) premiums have risen, raising along with that the the dollars paid for commissions, and, 4) the number of uninsureds decreased.

So while I cannot say for sure (lack of time to research) it does not sound that far fetched. Also, I would like to know who the one large carrier is that was ommitted.
 
I strongly disagree with Jones and what he is doing. But regarding the broker comp, he may be correct...or at least close. Base year is 2000 and he is using "4 of 5" largest carriers. Since 2000 a couple of things have happened in California; 1) Kaiser had just started paying brokers, 2) many carriers went out of business and sold their blocks to the bigger carriers, 3) premiums have risen, raising along with that the the dollars paid for commissions, and, 4) the number of uninsureds decreased.

So while I cannot say for sure (lack of time to research) it does not sound that far fetched. Also, I would like to know who the one large carrier is that was ommitted.

#1 would have the largest effect, as large as Kaiser is. #3 would be fine if the year-over-year rate increase was around 30%, and if comp remained the same or increased.

Again, if that's the case, it's a case of "lies, damn lies, and statistics."
 
#1 would have the largest effect, as large as Kaiser is. #3 would be fine if the year-over-year rate increase was around 30%, and if comp remained the same or increased.

Again, if that's the case, it's a case of "lies, damn lies, and statistics."

You are missing the point. Add all of these, and maybe one or two I did not think about, and it would not be that difficult to get close to his numbers. Think of how many members these big 4 carriers got from the smaller carriers going out of business alone; how many local HMO's are no longer in business, how many carriers sold their individual blocks, etc.
 
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