I Feel for my Off-exchange Clients who Will Be Hit on Their Renewal

[TN_agent]

This doesn't make much sense. I thought off -exchange was paying the same? I guess the hassle of dealing with ACA is not worth it.

Off exchange has the same rates, but they are not eligible for a subsidy. The subsidy given by the exchange is what causes the "out of pocket" premium difference.

In KG's example, the client could have saved hundreds per month by going on exchange since she qualifies for a subsidy. Same premium, she just doesn't pay all of it when using the exchange.

I think Gulfman meant that it doesn't make sense for a broker not to sell on exchange since the commission are required to be the same.

It may be that the broker sold her with a company that doesn't sell on-ex, though, so they want her to stay far away so they don't lose their commission, which is being a crappy agent, what goes around comes around in that situation.

 

[somarco]

Some agents decided to completely avoid the exchange and subsidized plans. Nothing wrong with that as long as they told existing clients and new prospects of that position and let them decide. These agents decided, for varying reasons, that exchange/subsidized business did not fit their business model.

In much the same way that some agents focus on Medigap only but are willing to refer out MA prospects.

And some agents will only offer permanent life insurance plans even if it means losing a term sale.

Different strokes.

 

[scagnt83]

I think Gulfman meant that it doesn't make sense for a broker not to sell on exchange since the commission are required to be the same.

Good point. That is probably what he meant.

 

[TN_agent]

Of course I don't think agents should be required to sell on-ex.

But in the example quoted above, the correct answer to the lady's question of "why am I not getting a subsidy" is "I don't sell those type of plans, call hc.gov", not "I don't know" or not having an answer and letting her spend thousands of dollars needlessly.

You can sell against other options all day, or lose sales because you don't sell what they really need, but to fail to mention other options exist when they ask and cost a client thousands of dollars a year IS crappy.

 

[somarco]

I don't sell against anything.

To be more precise, I don't sell anything at all.

I inform, advise, and let the client decide what works for them. We both (client and I) sleep well at night because of that.

People love to buy but hate to be sold.

As for the agent (above) that failed to inform the client of other options because he/she did not sell that product, it is a damn shame people like that still have a license.

 

[Ann H]

I think this is a situation which will be affecting my wife. I don't understand much of the terminology I am seeing. What's a good thing to read to learn something about the meaning of things like On Exchange, Off Exchange, subsidy, etc.
Thanks.
LD

It is best to use an independent agent. There isn't time for you to understand everything having to do with ON or OFF exchange plans, but an agent can expertly guide you. In the meantime, you can visit websites of agents in your area, and you will find plenty of information on those sites.

Remember:
* An independent agent works with many insurance companies, and most will do ON and OFF exchange plans, or refer you to another agent who can.

* Healthcare.gov employees will only discuss ON exchange plans.