HRA Approach

[insurehound]

Besides getting a consulting fee, how exactly would a broker be paid using the HRA approach you have suggested ABC? What if the employees decide to buy their insurance themselves without your help?

Does the HRA concept cause the Employer to take on any additional fiduciary/regulatory risk? Pardon my ignorance as I am not very familar with the concept. I bet I will become much more familar with it very shortly LOL

..and I think I'm understanding why this may not be a good long term strategy. Low 2nd year commission levels in the Individual market, or the Group says, "thanks but we'll take it here" no need to sign/renew a consulting agreement, or the employees find coverage through the Exchange or from their own personal broker. Is that about right?

 

[ABC]

You have to be willing to speak with the employees about the approach. So you are educating and explaining this new concept to the employees and how lucky they are to have a benefit. You have to see the employees on why they should use you for their individual options. If you are not able to sell your ability and service then this approach will not work for you.

If the group was to get audited by the IRS the TPA then would provide all records for medical reimbursement.

Besides getting a consulting fee, how exactly would a broker be paid using the HRA approach you have suggested ABC? What if the employees decide to buy their insurance themselves without your help?

Does the HRA concept cause the Employer to take on any additional fiduciary/regulatory risk? Pardon my ignorance as I am not very familar with the concept. I bet I will become much more familar with it very shortly LOL

..and I think I'm understanding why this may not be a good long term strategy. Low 2nd year commission levels in the Individual market, or the Group says, "thanks but we'll take it here" no need to sign/renew a consulting agreement, or the employees find coverage through the Exchange or from their own personal broker. Is that about right?

 

[insurehound]

Thanks ABC...now to fill 20 characters so I can post

 

[ABC]

The predicted final results are in.

1st I saved the group $70k with this approach.

From a comp standpoint

My 1st year comp will go up 33% with the individual plans vs PEPM on the group plan.

The 2nd year comp will drop 56% vs PEPM.

If the employer is going to save this kind of money and no longer have to deal with double digit rate increase, this will be a common approach for small groups.

 

[stuy119]

Did you include a consulting fee in this, or did you work solely off commissioned comp?

 

[somarco]

What happens in 2014 when employees can buy "subsidized" health insurance through the x-change?

 

[ABC]

I did not ask for a consulting fee.

In 2014, I hope to be able to sell the Federal Exchange and get a comp from it. If I am unable to get compensated then this approach is dead.

If there is no comp for producer on the federal exchange then its game over for small group.

I am hoping to see a comp like medicare supp market.

 

[insurehound]

I think another question is if the employees want to buy insurance from an agent (you) through the Exchange.

 

[Ann H]

I think another question is if the employees want to buy insurance from an agent (you) through the Exchange.

All jokes aside, that is a serious question. I assume that up to 50% of the employees of my groups will tell me "adios" if their employer dismantles the group plan and sends them all shopping. It's not because I don't make personal contact or do customer service. It's a deep resentment employees have had at being "shackled" to the employer's decision for health plans and health agents. That resentment, and the resentment over the entire healthcare system and its costs are often shifted to the agent in a kind of "kill the messenger" approach.

 

[ABC]

My entire career I have sold my services. I hope to continue to sell my services. Most people appreciate having someone to call if they have a problem other than a 1-800 #.

The insureds are still going to have to deal with health insurance companies. We can make that easier for them.

There will be a segment of young people that may not use us directly but if you have an online portal you could pick up new clients.

All jokes aside, that is a serious question. I assume that up to 50% of the employees of my groups will tell me "adios" if their employer dismantles the group plan and sends them all shopping. It's not because I don't make personal contact or do customer service. It's a deep resentment employees have had at being "shackled" to the employer's decision for health plans and health agents. That resentment, and the resentment over the entire healthcare system and its costs are often shifted to the agent in a kind of "kill the messenger" approach.