Fee-Based Rather Than Commission Earnings?

[Prouddad]

Due to Health Care Reform's effect on commissions, there appears to be a movement by some to collect fees from clients for writing individual policies and/or very small groups.

I understand why agents want to do this, but I'm not sure that it's legal in all states. I know that an agent can't refuse commissions from a carrier that pays them, but can a licensed agent charge an individual or employer a consulting fee for advising them on their insurance matters?

 

[Crabcake Johnny]

Forget about the legality - the reality is you're not going to find regular people to pay you a fee for selling them health insurance.

 

[leevena]

I have spoken to a few agents who are doing something similar. The strategy is to transition the employer to a defined contribution, collapse the group plan and write individual apps on each employee. They collect commission from the carrier and enter into a deal with the employer by which they receive a % of the savings from the old plan to the new plan.

As for small group, I have only seen it on self-funded groups, not fully insured, so I cannot offer an opinion. Sorry.