Health Book of Business

[Double D]

I need help from the educated on this forum. I have someone looking to sell their Health book for a 1.6 multiple..over 600k in revenue. My objective is to buy it and cross sell P&C and Life since that is my experience. My question is how are the exchanges going to effect the commissions going forward. Most of the book is BCBS and the lower commissions have already been accounted for. 60% individual 20% group 20% med sup.

Thanks in advance

 

[Ann H]

What state are you in?

 

[DS4]

I need help from the educated on this forum. I have someone looking to sell their Health book for a 1.6 multiple..over 600k in revenue. My objective is to buy it and cross sell P&C and Life since that is my experience. My question is how are the exchanges going to effect the commissions going forward. Most of the book is BCBS and the lower commissions have already been accounted for. 60% individual 20% group 20% med sup.

Thanks in advance

1.6 is way too much with Obamacare looming and 80% of the book subject.

 

[stuy119]

DS4 hit the nail on the head. Until later this summer when commission structure is announced, it's a bad time to buy a book like that.

 

[BIG RED IS BACK]

this is a GREAT deal!

For the current owner............

 

[Double D]

What state are you in?

It's in the Southeast.

 

[Ann H]

To answer your question "...how are the exchanges going to effect the commissions going forward", we would need to know if your state is part of the Federally Facilitated Exchanges, or one that will set up their own exchange.

To cross sell those people for other lines, you will need to show them support through the transition to Obamacare. Otherwise, they are just going to be angry that you (and the prior agent) left them stranded. The groups in particular will feel this way.

But basically, to answer your question, commission in 2014 will probably be similar to the level it is now, and most states have agreed to pay commission even for Exchange business. However, you need to rewrite all those cases in order to get that commission. Are you planning on becoming an Obamacare expert to help your individuals and groups? As for groups, we expect a good number of them to drop the coverage and allow all their employees to seek individual/family coverage in the exchange or in the private market.

That means the renewal commissions for all that business (except the grandfathered portion and the Med Supps) are gone on 1/1/2014 or the renewal thereafter. If you don't plan to rewrite all those cases personally in the exchange or private market, then it's gone.

In the last few years, I was interested in buying books of business from agents who left the health insurance field. But now, all that business is up for grabs for free, so I don't know why I would spend money to buy it. If I was going to do that, I would look at it like a list of leads, not a book of business, and the sales price would be much lower. But since Obamacare will come with millions of people displaced from their current insurance and needing to purchase new insurance, I don't know why I would pay for leads either.

 

[Double D]

DS4 hit the nail on the head. Until later this summer when commission structure is announced, it's a bad time to buy a book like that.

Do you know of a website where I can get more information on the topic of future commissions. Also, is there any idea of what the commissions will be?

 

[pcbinsurance]

"What state are you in?
It's in the Southeast.
**********************
Is it really that difficult to tell us which state you are in? Is this some sort of strange guessing game we're playing here?

 

[Double D]

To answer your question "...how are the exchanges going to effect the commissions going forward", we would need to know if your state is part of the Federally Facilitated Exchanges, or one that will set up their own exchange.

To cross sell those people for other lines, you will need to show them support through the transition to Obamacare. Otherwise, they are just going to be angry that you (and the prior agent) left them stranded. The groups in particular will feel this way.

But basically, to answer your question, commission in 2014 will probably be similar to the level it is now, and most states have agreed to pay commission even for Exchange business. However, you need to rewrite all those cases in order to get that commission. Are you planning on becoming an Obamacare expert to help your individuals and groups? As for groups, we expect a good number of them to drop the coverage and allow all their employees to seek individual/family coverage in the exchange or in the private market.

That means the renewal commissions for all that business (except the grandfathered portion and the Med Supps) are gone on 1/1/2014 or the renewal thereafter. If you don't plan to rewrite all those cases personally in the exchange or private market, then it's gone.

In the last few years, I was interested in buying books of business from agents who left the health insurance field. But now, all that business is up for grabs for free, so I don't know why I would spend money to buy it. If I was going to do that, I would look at it like a list of leads, not a book of business, and the sales price would be much lower. But since Obamacare will come with millions of people displaced from their current insurance and needing to purchase new insurance, I don't know why I would pay for leads either.

So It sounds like I would be crazy to buy any health insurance book let alone paying a 1.6 multiple. My background is P&C and I was looking to cross sell