How to Make ACA More Broker/agent Friendly?

[insuranceconceptscindy]

I agree with the other posts pointing out that this is useless. But from another perspective, you should keep in mind that the carrier side of the business does not want brokers involved either. As a whole, the carrier side sees agents brining very little to no value while adding an expense.

I hear that all the time from brokers and agents. But is it really true? If a carrier had it's own, in house sales force set up like we do business, it would cost them considerably more than paying us a commission. It's a love/hate relationship, but it's essential to be profitable.

 

[leevena]

I hear that all the time from brokers and agents. But is it really true? If a carrier had it's own, in house sales force set up like we do business, it would cost them considerably more than paying us a commission. It's a love/hate relationship, but it's essential to be profitable.

I could have been a little more specific. For individual and small group sales, the need for an agent has diminished greatly over the past few years. The value that an agent has traditional brought to the table was; 1) finding prospects, 2) providing/explaning to the prospect them with a quote, and 3) completing the paperwork to enroll.

Forces in the market place have begun to work against the agent. To begin wtih, ACA has made health insurance a legall requirement, which on the surface would make one believe that this is a bonanza for an agent. Second, ACA has also sped up the process of comoditizing health insurance. Carriers have been eliminated from the markets and plan designs between them have become relatively similar. Third is technology. A shopper can go online, review their offerings and enroll. Fourth, is that carriers are under significant pressure to cut admin costs. Agent comp is an easy cut, considering where the market is going now.

Large group and self-funded is somewhat exempt from these, but who knows in the future.

Not saying that agents are not needed, just saying that over time it will become similar to the airline ticket industry where travel agents are all but gone, except for special circumstances or junket type needs.

 

[somarco]

I hear that all the time from brokers and agents. But is it really true?

Before Obamacare, and especially 2014 when GI became the norm, a good broker was much more cost effective than staffing the home office.

But that all changed in late 2013 when the exchange (almost) made life different. The Obama administration has anointed thousands of enrollment assister's, navigators, social workers, etc as quasi-agents. These busy bee's are available at essentially no cost to the carrier.

In addition, DC spends a lot of OUR tax dollars to promote their (still dysfunctional) website and never mentions using an agent to help people find coverage.

Lee is correct. In today's brave new world the agent is superfluous. Carriers will keep cutting commissions until agents finally realize it is no longer profitable to pursue that line of business.

The carriers can operate in the new environment without the agent for IFP business.

 

[FLM2]

Before Obamacare, and especially 2014 when GI became the norm, a good broker was much more cost effective than staffing the home office.

But that all changed in late 2013 when the exchange (almost) made life different. The Obama administration has anointed thousands of enrollment assister's, navigators, social workers, etc as quasi-agents. These busy bee's are available at essentially no cost to the carrier.

In addition, DC spends a lot of OUR tax dollars to promote their (still dysfunctional) website and never mentions using an agent to help people find coverage.

Lee is correct. In today's brave new world the agent is superfluous. Carriers will keep cutting commissions until agents finally realize it is no longer profitable to pursue that line of business.

The carriers can operate in the new environment without the agent for IFP business.

It doesn't make any sense to say that agents are superfluous for IFP when the exact same model (GI, Open Enrollment) in the Medicare Advantage market has standardized commissions that pay anywhere from 6 to lifetime years.

If IFP commissions are eliminated, then MAPD commissions (and Part D commissions) should also have the fate.

And why should Medicare Supplement commissions be paid either if it is during ICEP or GI?

Agents have a role to play in all of this, all any of us can do is play by the rules 1 year at a time while preparing for major changes if they occur.

For those who walked away from IFP, you have made your choice, hopefully (for you) it has worked out with no regrets just as I have none for staying.

 

[GreenSky]

I hear that all the time from brokers and agents. But is it really true? If a carrier had it's own, in house sales force set up like we do business, it would cost them considerably more than paying us a commission. It's a love/hate relationship, but it's essential to be profitable.

Why would they need us when people MUST buy the product?

Rick

 

[AllenChicago]

Lee is correct. In today's brave new world the agent is superfluous. Carriers will keep cutting commissions until agents finally realize it is no longer profitable to pursue that line of business.

How low will they go Somarco?

 

[somarco]

How low will they go Somarco?

Not below $0 ..............

 

[Sherota1]

Agents have a role to play in all of this, all any of us can do is play by the rules 1 year at a time while preparing for major changes if they occur.

For those who walked away from IFP, you have made your choice, hopefully (for you) it has worked out with no regrets just as I have none for staying.

Totally agree.

 

[taterpeeler]

why did the chicken cross the road?... to run away from..... well never mind

 

[somarco]

Another point .......

Agents add an extra layer of expense and service that is not needed as long as enrollers, navigators, et al are out there to funnel business.

There is more than one thread about missing agent commissions and dropped NPN's. When an agent decides to audit their block and discovers numerous errors they contact the carrier who has to take time away from everything else to track down the problem.

Eliminating agents solves that problem.