CA Commissioner Throws Health Agents Under the Bus

[TXINSURANCE]

What is not mentioned is the VOLUME difference between 2000 and 2010. What amount was invested by brokers during this 10 year period to increase such enrollments?

The TOTAL number means NOTHING. To determine if this is "excessive" in your socialist model you would have to look at many other factors.

Ask ANY major carrier how their TOTAL enrollments are going this year with the reduction in broker commissions. Even PCIP is beginning to pay $100 after no one is buying the plan.

When will they learn... Brokers are paid because it is CHEAPER than DIRECT SALES MARKETING, proven time and time again. People are not going to be enrolling in the masses without MARKETING which is essentially what we are classified as.

Enjoy the ride...

 

[Crabcake Johnny]

I can't find the article. It blasted agents since it claimed that health premiums have doubled over the past 10 years it means we've already received a 100% pay increase over the past 10 years or 10% per year.

Claims that by cutting the commissions in half it's only putting us back to 100% of what we earned 10 year ago.

 

[CHUMPS FROM OXFORD]

So right. Joe...You're working too hard and making too much money. You need to visit here more often.

 

[Crabcake Johnny]

What is not mentioned is the VOLUME difference between 2000 and 2010. What amount was invested by brokers during this 10 year period to increase such enrollments?

The TOTAL number means NOTHING. To determine if this is "excessive" in your socialist model you would have to look at many other factors.

Ask ANY major carrier how their TOTAL enrollments are going this year with the reduction in broker commissions. Even PCIP is beginning to pay $100 after no one is buying the plan.

When will they learn... Brokers are paid because it is CHEAPER than DIRECT SALES MARKETING, proven time and time again. People are not going to be enrolling in the masses without MARKETING which is essentially what we are classified as.

Enjoy the ride...

While this is true, two carrier VP's went on at length with me about how their distribution channels lose money because agents write crap business.

One of them basically just erased their distribution channel and couldn't be more happy.

 

[TXINSURANCE]

While this is true, two carrier VP's went on at length with me about how their distribution channels lose money because agents write crap business.

One of them basically just erased their distribution channel and couldn't be more happy.

You mean insurance carriers want to cherry pick health and demographics? Say it isn't so...

 

[Crabcake Johnny]

The carriers don't want any business. They want business that stays on the books.

Look at the HBD debacle. They wrote a TON of business...but it was a TON of **** business that actually cost the carriers money.

Others like Imerica were taken down by crap business that didn't stay on the books driven by agents looking to cash that advance check.

The problem is, far too much of the business they get from agents are junk. And if you think you've seen changes....just wait. That's enough said.

 

[leevena]

I can't find the article. It blasted agents since it claimed that health premiums have doubled over the past 10 years it means we've already received a 100% pay increase over the past 10 years or 10% per year.

Claims that by cutting the commissions in half it's only putting us back to 100% of what we earned 10 year ago.

There is some legitimacy to this claim, and requires a good response to counter when posed by a client or critic. They will ask "If a broker places a piece of business (40 lives) with a carrier and enrollment remains constant, but through premium increases the amount of commissions increases, is the employer/carrier getting their monies worth?"

Unless someone (you the broker) can explain this we are left being viewed as greedy.

 

[Crabcake Johnny]

There is some validity. In 2003 I was writing family PPO deals all day long for $280. They're now $500.

But that's not apples to apples. I was writing $280 $1,000/$1,500 deductible deals with $2,000 OOPs.

If I worked up a deal like that today it would be 4X what I was writing in '03.

 

[GreenSky]

You know what else happened since 2000? MA and PDP plans. Until then, Medicare Part C (or whatever it has been called in the past 11 years) were generally written by captive agents.

My guess is my MA commission in 2000 might have been $15,000. Now it's 6 figures.

I can almost bet they are included in those figures.

Rick

 

[Ann H]

Also, those figures were about broker commissions, not general marketing and sales. Did carriers (in addition to Kaiser) decide to close direct-sales distribution and go through brokers instead? That would artificially raise the figures when the sales channel was switched from in-house to brokers.

Undoubtedly, premiums have risen with the cost of inflation. However, most brokers show clients, at renewal, how to alter their plan design to maintain their budget. A double-digit rate increase usually is whittled down to 3-7% by raising the deductible, copay, etc. I wish my income rose at the rate of medical inflation!