Consumers Lose when Agents/brokers Lose Commissions

[Yagents]

I guess words matter........

AIS Quote of the day:

"This is a whole new provision related to the termination [by HHS] of agents [operating on HealthCare.gov]. It is unwarranted, unjustified and unnecessary. At first glance, it seems that this [provision] is a good thing because it protects consumers. But when you read through the details, it is alarming. We don't defend any agents who might attempt to defraud customers...but the language used here is likely unconstitutional [because it lacks due process]. The words on the page matter."

— Wes Bissett, vice president of state government affairs at the Independent Insurance Agents and Brokers of America, commenting to AIS's Inside Health Insurance Exchanges on an HHS proposal released Nov. 20, under which brokers and agents could be barred from HealthCare.gov for 90 days if HHS suspects fraud or abuse.

Click here to read the INSIDE HEALTH INSURANCE EXCHANGES article in which this quote appeared — "Provision Would Let HHS Suspend Brokers From HealthCare.gov" (Free for HEX subscribers; $17 for non-subscribers).

 

[AgentStone]

Agree! 2 mths prep and 1 1/2 mths enrollment for 1st of the yr = 3 1/2 mths min of time.

I've lost more business this year due to clients going direct via ins company advertising. I've had a few login to update gov't app and report my name was there with a different NPN. I haven't been able to track all clients going into 2016 yet, but concerned that my 3 1/2 mths isn't going to pay off!

 

[kgmom219]

Agree! 2 mths prep and 1 1/2 mths enrollment for 1st of the yr = 3 1/2 mths min of time.

I've lost more business this year due to clients going direct via ins company advertising. I've had a few login to update gov't app and report my name was there with a different NPN. I haven't been able to track all clients going into 2016 yet, but concerned that my 3 1/2 mths isn't going to pay off!

Hmmmm...you might want to figure out why clients aren't calling you first.

 

[NIAMAN]

I think my decision to stay out of the Exchange business looks more sound as I read of your experiences. I had just about decided to get my feet wet when I got the letter from UHC stating no commissions on new Exchange business, but they appreciated me very much, and hoped I would continue to offer their products ! No Thanks ! I think with the lack of acceptance on some plans by providers in our area and the high deductibles, you won't be building good will with clients who you might be able to write upon reaching Medicare age.

 

[AllenChicago]

I've lost more business this year due to clients going direct via ins company advertising.

In the suburban and rural areas of Illinois, I'm re-enrolling quite a few people who signed up on their own at Healthcare.gov, a Web Broker, or Direct to an Insurer. The 2015 PPO networks have changed radically here for 2016.

For instance, Blue Cross (88% market share) transferred all customers from the drab sounding "Blue PPO" to the fancy sounding "Blue Choice Preferred PPO", effective 1.1.2016...and lowered their premium by 10%-15%. Great? Nope!

The Blue Choice Preferred only has 60% of Illinois Doctors and Hospitals. And most of those are in the Chicago metro area. Blue PPO has 95% of all Illinois Doctors and Hospitals, state-wide.

A lot of "do it yourselfers" either actively enrolled in a Blue Choice Preferred network plan, or let Blue Cross passively renew them into it.

Also, our Land of Lincoln Co-op abruptly shut off enrollment yesterday, and the CEO is resigning, effective this Thursday. But the "do it yourselfers" enrolled in their plans by the boatload.

If I call a small business lead and he/she doesn't have an agent, it's EASY to get their attention this Open Enrollment. Most of them are thankful for the assistance/guidance and send me referrals. The more perceptive business owners ask if Obama has decimated our industry, because I'm the only one who's called them the entire year. Totally different from the pre-ObamaCare phone call bombardments, and sales people just dropping in.

 

[somarco]

Consumers may need an attorney, but most won't reach out to one until there is a problem.

Same with insurance agents.

We can talk about the real value we bring to the table, but until the consumer recognizes and agrees with that observation, we are superfluous.

Even when the consumer appreciates the role of the agent, if our compensation is such that we cannot operate a profitable business, it really doesn't matter what the consumer wants.

The govt has manipulated the entire health insurance industry, not just distribution, to the point the consumer believes, in many cases, the only place to get Obamacare is via hc.gov.

DC has used our tax dollars to structure a campaign to drive agents out of the business and make us appear to be nothing more than commission hungry peddlers that will say and do anything for a buck.

Agents laughed at me when I said only a few carriers would survive and agent comp would drop to zero.

We aren't there yet but we are gaining on that day.

I held out as long as I could before throwing in the towel. My only regret is that I didn't do it sooner.

AC, I wish you the best and am glad you have found your niche. I sincerely hope it works out for you.

The problem with Ocare is twofold.

The DIY folks have no one to blame but themselves, yet they will blame the carrier for misleading them.

Those that use agents will blame the agent when things don't work out as planned.

I spent 40 years playing the part of the referee between client and carrier and that's enough. I moved on and so have many of my friends who have made a good living for years in the U65 health insurance market.

Now many of them are only servicing existing clients, not looking for new ones and will have nothing to do with exchange subsidized plans.

Can't blame them one bit.

 

[FLM2]

Consumers may need an attorney, but most won't reach out to one until there is a problem.

Same with insurance agents.

We can talk about the real value we bring to the table, but until the consumer recognizes and agrees with that observation, we are superfluous.

Even when the consumer appreciates the role of the agent, if our compensation is such that we cannot operate a profitable business, it really doesn't matter what the consumer wants.

The govt has manipulated the entire health insurance industry, not just distribution, to the point the consumer believes, in many cases, the only place to get Obamacare is via hc.gov.

DC has used our tax dollars to structure a campaign to drive agents out of the business and make us appear to be nothing more than commission hungry peddlers that will say and do anything for a buck.

Agents laughed at me when I said only a few carriers would survive and agent comp would drop to zero.

We aren't there yet but we are gaining on that day.

I held out as long as I could before throwing in the towel. My only regret is that I didn't do it sooner.

AC, I wish you the best and am glad you have found your niche. I sincerely hope it works out for you.

The problem with Ocare is twofold.

The DIY folks have no one to blame but themselves, yet they will blame the carrier for misleading them.

Those that use agents will blame the agent when things don't work out as planned.

I spent 40 years playing the part of the referee between client and carrier and that's enough. I moved on and so have many of my friends who have made a good living for years in the U65 health insurance market.

Now many of them are only servicing existing clients, not looking for new ones and will have nothing to do with exchange subsidized plans.

Can't blame them one bit.

Somarco, very well said, if I could give you 10 'Thumbs Up' I would

 

[Yagents]

I kind of love you too...........

http://ifawebnews.com/2015/12/08/ci...ome-broker-commissions/#.VmhH9WIfIjU.linkedin


In late December, Cigna will stop paying brokers commissions if they sell gold-level individual plans, which cover more costs than do the less expensive bronze and silver level plans. What is Cigna’s concern with gold products?

Adverse selection. [It’s not that policyholders] are necessarily older or sicker. The whole way the benefits are configured and the way marketplace is working — the performance of those plans — is much less reasonable than all the other plans.

Either there will be more flexibility to configure them in a way to make them sustainable or there won’t be gold plans.

So is Cigna staying in the market?

We’re in for 2016.

How about 2017?

We haven’t made a comment relative to 2017. We view 2014, 2015 and 2016 as Version 1.0.

 

[FLM2]

I kind of love you too...........

http://ifawebnews.com/2015/12/08/ci...ome-broker-commissions/#.VmhH9WIfIjU.linkedin


In late December, Cigna will stop paying brokers commissions if they sell gold-level individual plans, which cover more costs than do the less expensive bronze and silver level plans. What is Cigna’s concern with gold products?

Adverse selection. [It’s not that policyholders] are necessarily older or sicker. The whole way the benefits are configured and the way marketplace is working — the performance of those plans — is much less reasonable than all the other plans.

Either there will be more flexibility to configure them in a way to make them sustainable or there won’t be gold plans.

So is Cigna staying in the market?

We’re in for 2016.

How about 2017?

We haven’t made a comment relative to 2017. We view 2014, 2015 and 2016 as Version 1.0.

I wrote 5 Cigna apps in 2015 and was never paid for one of them-I've made the maximum number of calls to Cigna that I will make, have not had any resolution, and, as a result, no longer offer Cigna to my clients.

 

[AgentStone]

kgmom219... what I have now discovered is that my clients enrolling On Mktpl with this one ins co, the agent NPN was NOT transferring from the gov’t app to the insurance app! My rep for that co instructed me to provide a list of clients I enrolled to get credit (there were at least 10 ind/fam so far that I know of).

What really bothers me is that the gov’t sends an email out every day to last yrs enrollees (good and bad).

GOOD… the client is more likely to go into hc.gov and update personal info (for fear of losing big brother’s $ support) and buy again.

BAD… the majority of my ON mktpl clients did not apply via my quoting tool this year (so that I could track enrollment). They are accustom to going directly into hc.gov. My info in several cases is not always transferring from last yr’s gov’t app to this yr! I have spoken to most of my clients and have found in some cases the agent info is blank or the NPN this year is another agents (not a one or digit error on the clients part of keying incorrectly).

I would have never gotten credit.

My head is spinning trying to get a handle on what each client has done! Has this happened to anyone else???