Future Commission on Small Group Health

[ABC]

Well the future of small group health does not look good after the MLR was released. We still a have a very slight chance of the NAHU pulling off something for us.

Here is my thoughts on what we might be faced with.

Comp is going to go a "consulting fee"
This is where the client agrees to pay you x for your services.

It will be very similar to current ASO plans comps.



Anyone have any thoughts on this?

 

[somarco]

I think small group is (or will be) DOA. By the time the economy turns around health insurance premiums will be so high employers won't be able to provide the benefit. The exchange will be here in a little over 3 years.

If many large employers (AT&T, Deere, 3M, Verizon) are considering giving group health the boot and paying the fine, there is even less incentive for small employers, who are exempt from the fine, from even playing.

I have played the consulting fee route in the past. That is a tough road and can't say it is any easier now. Too many feel they are entitled to free advice (no matter how poor that advice may be) in this internet age.

 

[ABC]

I think you are right.

I think small group is (or will be) DOA. By the time the economy turns around health insurance premiums will be so high employers won't be able to provide the benefit. The exchange will be here in a little over 3 years.

If many large employers (AT&T, Deere, 3M, Verizon) are considering giving group health the boot and paying the fine, there is even less incentive for small employers, who are exempt from the fine, from even playing.

I have played the consulting fee route in the past. That is a tough road and can't say it is any easier now. Too many feel they are entitled to free advice (no matter how poor that advice may be) in this internet age.

 

[scagnt83]

While I do agree that the group side of things is most likely a dying industry over the next 6 to 7 years; I also feel that if they drop group comp all together (or even drastically cut it) then there should be opportunity to come in and consult on the changes in the marketplace.

The only problem is that if the exchanges get off the ground like planned, then it will be a limited time gig since eventually all companies will drop HI coverage and let employees go to the exchange.

Sadly, if this happens it will give businesses incentive to keep salaries at or below the subsidy mark for the exchange. Which we all know is not that high...

 

[Broker007]

I respectfully disagree. We produce significant revenue from small group health. At the end of the day, the country is made up of small businesses and that will not change any time soon. Producers have to become more creative. If you as an agent think you deserve big money for spread-sheeting premiums then you are sadly mistaken.

 

[somarco]

This is all speculation of course, but here is another prediction. As health insurance premiums continue to rise, at least partially under the weight of Obamacrap, there will be less disposable income for worksite products.

 

[YouGotMyMoney]

This is all speculation of course, but here is another prediction. As health insurance premiums continue to rise, at least partially under the weight of Obamacrap, there will be less disposable income for worksite products.

Then they can all get mini-meds, I gots to eat.

 

[somarco]

I gots to eat

Haven't you heard?

Eating is for closers . . .

 

[ABC]

I respectfully disagree. We produce significant revenue from small group health. At the end of the day, the country is made up of small businesses and that will not change any time soon. Producers have to become more creative. If you as an agent think you deserve big money for spread-sheeting premiums then you are sadly mistaken.

I 100% agree with this statement.

 

[Full Throttle]

I just had a renewal meeting with a 7 employee company, I saved them $10,000 (net of claims paid out and premiums)last year for better coverage with an HRA/HDHP combo. They previously had a $1000 deductible co-pay plan in place. I'm sure they would have gotten the same advice from the state exchange rep.