Getting Paid

[Ann H]

I just got off the phone with a friend who was a long-time IFP carrier rep until just recently. This guy is fair, respectable, and very experienced. He doesn't speak rashly, and isn't bashing his former employer either.

He said the carriers (including the one he just left) are all planning for exchange plans to be strict HMO look-alikes. He said the market outside the exchange will have larger networks and more choice.

He said his former carrier feels that brokers are more necessary now than ever.

 

[somarco]

many changes since the early 90's and although now that this is going to happen, I feel there are just too many agencies involved for a smooth operation.

My tenure pre-dates yours by almost 20 years. No brag, just fact.

I have never seen anything so broad based and uniquely destructive of the status quo as this monstrosity.

While I do have a dog in this hunt, my concern is more for the individuals who want to buy insurance but will not be able to afford it . . . even if we had a robust economy.

Bill, this one's for you.

Reagan-Mondale debate: the age issue - YouTube

 

[taterpeeler]

mine is bigger than yours, nanna nanna poo poo

 

[Dave020]

I just got off the phone with a friend who was a long-time IFP carrier rep until just recently. This guy is fair, respectable, and very experienced. He doesn't speak rashly, and isn't bashing his former employer either.

He said the carriers (including the one he just left) are all planning for exchange plans to be strict HMO look-alikes. He said the market outside the exchange will have larger networks and more choice.

He said his former carrier feels that brokers are more necessary now than ever.

I am hearing similar rumors

 

[Ann H]

My tenure pre-dates yours by almost 20 years. No brag, just fact.

I have never seen anything so broad based and uniquely destructive of the status quo as this monstrosity.

While I do have a dog in this hunt, my concern is more for the individuals who want to buy insurance but will not be able to afford it . . . even if we had a robust economy.

Bill, this one's for you.

Reagan-Mondale debate: the age issue - YouTube

Love the video! One of the debates' most memorable moments! And yes, I am old enough to remember it.

I have 32 years in this business now. I've seen major markets decline and others rise likewise due to major pieces of legislation and the regulations that follow. This is indeed "the big one".

However...... When groups had to go GI due to federal law, it rocked the market, compressed the number of carriers available, put newbie agents out of business, etc.

The market rose, and fell, and twisted and turned, rose again, fell again, and then found its own level. It spiked premiums for businesses that already had a group plan. Insurers and agents and businesses all felt losses.

However, the GI factor made insurance available to people who had medical conditions and were members of a group. Yes, we had people forming businesses in order to become insured! So the number of insured expanded. With the volume, the premiums equalized somewhat. No, the premiums never went back to the previous level. Now, today, group insurance is still priced quite a bit higher than underwritten IFP, partly due to GI, but also due to mandated maternity, and higher benefits than you usually see on IFP.

So, it rocked the system, and spiked premiums, but those who held on saw a firm market emerge. This law is larger than that, for sure. It is altering the face of the largest segment of the US economy (health care). However, if you can change and adjust, and hold on until the firm market emerges, you have a future. Darwin said it's not the strongest that survive, it's those with the ability to adapt.

 

[somarco]

You must be referring to small group GI. I never worked that market until a few years ago. All my group experience in the first 30 years or so in the industry was large group (100+) with about half that time in the ERISA self funded market. We always had GI.

And yes, many changes in that market as well. HMO expansion, copay plans (especially on Rx), maternity as any illness, COBRA.

Each one of those had an impact on rates and we (carriers and brokers) adapted.

The impact of Alibamacare on large group will be felt but mostly minimal (except for the companies that drop group plans and/or scale back the number of FT employees. Biggest change will be IFP and groups under 50.

Still say Alibamacare will rock the market like ERISA did for pension plans except this will effect change over less than 5 years vs 20 or so with ERISA.