Exchanges and Agent Commissions

[Crabcake Johnny]

Ran across this article this morning that covers that some states are considering regarding agent compensation for the exchanges.

Health insurance brokers battle for fees - MassLive.com

Iowa - at least 5%
Maryland - brokers barred from the exchange

One thing I wanted to remind every of is the PPCA legislation left commissions up to the states. There won't be any national commission rate.

 

[STIBROKER]

Maryland - brokers barred from the exchange

thats a mistake........and sucks............

 

[HealthGuy]

Does anybody think that at 5% commish that being a "health agent" is a valid career anymore? I'm not trying to be a jacka$$ but come on. At the end of the day, when this bill is not repealed (I hope I am wrong) there will be nothing significant left to sell. Its like you want a bronze, silver, or gold Obama plan? How about fries with that (accident, CI, dental, etc).....Ridiculous but true. I never thought I would live to see the day when our country stood by and gave up a large piece of our freedom, but it is here. The day this health bill passed is the day a piece of the American dream officially died. But maybe we have been dying a slow death a long time. Obama and congress can't fix broke and dumb dick reality show Joe - about 50% of our population - been lulled to sleep. Obamommy is now their mommy.

 

[aheff]

Healthguy-
To answer your question- Yes. However, our business model would be drastically altered. If the exchanges actually come to fruition, and if the commission is 5%, including 5% renewals, and if agents are allowed to participate in the exchanges, and if there is an individual mandate, then yes, the sharp agent will do just fine. There will be significantly more prospects, significantly less agents, we will be spending significantly less time per client.

 

[STIBROKER]

well if it doubles the prem's its almost like getting 10% ....but on the other had the will not have money for the life insurance I am trying to hook them up on......

Does anybody think that at 5% commish that being a "health agent" is a valid career anymore?

 

[Crabcake Johnny]

Below 400% FLP it's all subsidized so it'll actually be cheaper, not more expensive than it is now.

 

[HealthGuy]

AHEFF and STI, all valid points, lets keep this thread running! HealthGuy

 

[taterpeeler]

I just spoke with rep solomons, nash and sen nelson from the state leg. i explained there needed to be langague related to protecting the role of the agent with "commission" not a app fee like the risk pool.

i suggest all call their state reps to indiicate the same

 

[leevena]

Healthguy-
To answer your question- Yes. However, our business model would be drastically altered. If the exchanges actually come to fruition, and if the commission is 5%, including 5% renewals, and if agents are allowed to participate in the exchanges, and if there is an individual mandate, then yes, the sharp agent will do just fine. There will be significantly more prospects, significantly less agents, we will be spending significantly less time per client.

I agree with you that money/living can be made within Obamacare. I do caution about the statement that "there will be significantly more prospects."

Keep in mind that the Individual Mandate has a "pay or play" rule, with the penalty being much lower than the cost of a premium. And, since the exchanges will have GI, no Pre-ex plans available, it incents people to wait until they need coverage.

Additionally, mandate is not required when the premium for the employer plan is more than 8% of the ee's modified household income. For example, an income of $30,000x .08=$2,400. The $2400 per year is a $200 per month premium rate. Not too difficult to see that many people will not need to get coverage.

 

[stuy119]

I just spoke with rep solomons, nash and sen nelson from the state leg. i explained there needed to be langague related to protecting the role of the agent with "commission" not a app fee like the risk pool.

i suggest all call their state reps to indiicate the same

Ideas to focus on in this battle:
Policyholders lose an "advocate" to assist them with claim issues.
Private-sector jobs are being displaced.
Financially unprepared consumers for life's surprises.
A less informed, less trustworthy work-force.

Feel free to add to this ...