I Will Lose ___% of My Income Due to HCR

[aheff]

I have been attempting to try to figure out what income loss I will suffer due to Obamacare. I'm sure many of you are doing the same. I realize that there are many, many moving parts to HCR and that it is impossible to know what is going to happen, especially in 2014. However, as good business people, we also have to do planning-for the past year, I have been diversifying further to try to make up for that lost income.
So, who wants to play this game?
Me first. My health insurance block of business is made of of individual policies, as well as small group. My projection of lost income- 60%. There was no scientific way that I came up with that number. Anyone else?

 

[Crabcake Johnny]

Without an influx of freshly underwritten business, the block ages quickly and rate increases on a closed block will kill off everyone within about 2 years.

I wrote a lot of business under Assurant's 192 Series. It was benefit rich with reasonable premiums. They closed that block. After about 2 years I almost didn't have anyone left standing - maybe 5%. Not to say I lost all of those clients, but I had to move them.

If a majority of your business is comprised of plans that are no longer being offered, you'll be moving basically everyone who's able to be moved within the next two years.

However, moving those people aren't going to be easy. None will qualify for the risk pool and anyone who can't pass underwriting will be hung out to dry. Others who are healthy can move but you'll have a lot of fun moving them from their $300/mo premium with a $2,500 deductible to a $420 premium with a $7,500 deductible.

 

[HealthGuy]

Next 2 to 3 years, without cross selling the sh$t out of everything (good luck everybody with increasing health premiums cross selling that critical illness, etc.) we are easily looking at a 50% drop in income? Who is going to be left standing through this mess? All of you pimping agents who sold World, American Republic, other third world carriers the last 5 years? Good luck,that is if you haven't blown out of the business yet.

 

[669comche]

I am not focusing on what % of my income I will lose.

I am focusing on the new opportunities that reform will bring and ways to increase volume.

Going multi line for a lot of agents will not be easy.

 

[GreenSky]

I am focusing on the new opportunities that reform will bring

Such as working for the IRS or another government agency?

Rick

 

[669comche]

Hell yeah. I want those lavish health insurance benefits!

 

[Crabcake Johnny]

I am not focusing on what % of my income I will lose.

I am focusing on the new opportunities that reform will bring and ways to increase volume.

Going multi line for a lot of agents will not be easy.

So with higher premiums, higher OOPs, no child only, no maternity, no mandates and no subsidies you're going to create more volume?

"Your hotdog business isn't doing that well. What's your plan to make more money?"

"Instead of charging $1.50 for a 1/2 pound dog I'm gonna start charging $3.00 for a 1/4 dog. Then my business will explode."

 

[HealthGuy]

I agree with John: Even with welfare subsidies for health insurance post 2014 who in the hell will be able to afford ANY ancilliary products we might try to pimp when health insurance rates are 2 to 3 times higher than they are today. I'm not so sure there are ANY opportunites springing forth from this bill.

 

[669comche]

No one said it was going to be easy.

I just don't think like the "doom and gloom merchants" its not in my DNA.

As for ancillary products, thats not what I was referring too. I was referring to multiple lines (Home, Auto, Health, Life etc etc)

Maybe in 2014 I will wake up and "smell the coffee" and you will all say "I told you so"

Until that happens I will try to keep positive and move my business forward.

 

[Crabcake Johnny]

Doom and gloom and reality are two different things. The reality is, if you're writing for anyone except Cigna you have no idea what your 1st year compensation is.

Personally, I'm not going to work then find out later what I'm going to be paid.