Can Agent Charge Clients a Fee for ACA Applications?

[sam816]

I am told by a prospect that another agent wanted to charge her a fee of $30/mon for filing an ACA application for her. Does anyone know if this is legal in AZ?

Given the fact that some carriers are cutting commissions all the way to zero, this may be the only way an agent can avoid losing money on ACA clients. Is doing so legal in your states?

 

[timsip]

I am told by a prospect that another agent wanted to charge her a fee of $30/mon for filing an ACA application for her. Does anyone know if this is legal in AZ?

Given the fact that some carriers are cutting commissions all the way to zero, this may be the only way an agent can avoid losing money on ACA clients. Is doing so legal in your states?

Let's pretend for a moment that it is legal. How do you enforce it and collect? Are you going to chase down clients and make them pay if they miss a payment? Send them to collections? I don't like that structure for many reasons. If charging a fee is legal in your state, I would suggest a one time fee at the application to cover the whole year. No one time fee, no help. The better business plan:Med Supps.

 

[RayNY]

I don't know about every state, but as far as I know, it's considered a "consultation fee", and it's permissible as long as it's in writing, with a defined cost, and agreed upon with a signature prior to the consultation.

If you plan to also make commission, you must specify that in the signed agreement. It's permissible, so long as you disclose it.

Consulting Fee for an Insurance Agent If anyone wants to read the NY guidance.

If you're able to bill, you can put any fees you want on the premium so long as you note it and have the client sign off on the rate. Some are doing $45+/month fees. Nice thing about this is, with just a custom made rate sheet, you can build a commission back into the products it was stripped from.

I'm turning away exchange clients at this point. I stand to make about $0.60/month/contract on average for renewals this year. It's truly no longer worth the time or the risk of a lawsuit when they do their taxes and realize how poorly they estimated their income.

 

[KennyWest]

If enrolling in an ACA plan charging a fee direct to the consumer is specifically not allowed by CMS.

 

[G.Gordon]

I'm not jacking with it if there is no money. I've got one client pair in a state where agents can't contract with the leading company. They are less than a year off Medicare so I did their ACA for free with the understanding that I get their Medicare benefit business. Other than that clients from BCBS of Kansas territories get, "Call the marketplace or BCBS of Kansas".

 

[Yagents]

Everyone needs to be calling their DOI's and asking this very question.

If not allowed, then legislation needs to be passed, at state and CMS level.

The sheeple will rise up and demand my services, and the ability to pay me a fee for ON exchange business (assuming OFF exchange still pays a commission).

Wouldn't that be a nice October election message to send out to clients.
"Sorry, I can no longer render my services." Try not to hurt yourself.

This business will shift to fees, just like financial advisors. Are you ready?

 

[cadylou]

I wonder how many "on-exchange" people would even be willing to pay a fee? Most of the people at the lower end of the income scale, are struggling to even pay their portion of the premium. I've had many of these "new", previously uninsured bitch if they have to pay even $15/mo for insurance that they didn't want in the first place. . . .nasty market.

 

[dgoldenz]

Pretty sure you need a securities license to charge a consulting fee, but I could be wrong.

 

[Yagents]

It's a 65 license, and it's not required in all states. Some have a special "counseling" license that you must ascertain. Think about the big benefit consultants, they charge fees.

Low income on paper and low assets isn't the target market.
They will instead have use navigators, who buy the way are paid a fee with taxpayor money, or HC.gov rep who gets an hourly "fee" to enroll.

Low income on paper, rich in assets is the key market.
Middle and middle also.

When you're helping someone correctly apply for upwards of $10,000 a year in tax credits, dealing with gov't and website, and they actually want to keep their doctors, meds, etc with the plan they choose, people will pay handsomely to have it done right, and in the most efficient manner. We all show people how to go HSA, save $200/mo in premiums, and get a $66000 tax deduction, I make up more than my weight in gold, and I'm about 135 lbs.

 

[Ann H]

get a $66000 tax deduction

You'll have to share how you do that $66000 tax deduction, comrade.

By the way, using my O-Bomb calculator, it's a $6,660,000 tax deduction. It's only a co-incidence that it contains 666.

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The price of Gold stands at $1,075.74 per ounce at this very minute. So, at 135 lbs, you are worth $2,323,598.40. Not bad.