If They Force You to BUY....?

[TonyC]

The concern is about the role of the agent and if in fact an agent (as we know them today) is at all needed.

The Exchanges will begin the process of standardizing products, limiting the number of carriers/plans available, and making the sale process streamlined. Public exchanges will be set-up to allow the qualifed health plans to market their products. The products allowed in the exchange will need to follow along the Metallic benefit designs. Since benefits will essentially be the same (not exactly, but close) it will require carriers to compete on price, network, and reputation. It is doubtful that many markets will have more than 2 carriers available, let alone competitive carriers. The Exchange will allow the public to see all the alternatives, compare them, speak to a person if they need help, and enroll. This is will not be all that different than how we purchase airline tickets, mortgages, auto loans, etc.

The law will also limit the amount of profit the carriers can make. Notice I said "profit", not losses. If the carrier loses money, the govt does not care. So if a carrier is being pinched by expenses, agent commission becomes an easy target. The carrier has the Exchange to fill that role of an agent.

Now consider the view of an agent's role in the process. Commissions have been defined as an expense, which leaves it at risk. The govt when writing/implementing Health Care Reform viewed the agent as an extra, uneeded expense. And when you consider how the exchanges will be run, there is some level of truth in that view.

Don't get me wrong, there are still ways for agents to make a living, it will just be tougher and take new ways.

Excellent response...and one that makes the most sense. If there are only 2-3 carriers who offer basically the same coverage...what value does the agent create?

Thanks Lee

 

[taterpeeler]

Excellent response...and one that makes the most sense. If there are only 2-3 carriers who offer basically the same coverage...what value does the agent create?

Thanks Lee

riddle me this tony and lee... based on your comments what value does the medicare advantage agent have?

 

[Yagents]

This law makes things so easy, my 10 yr old could buy a plan

 

[leevena]

riddle me this tony and lee... based on your comments what value does the medicare advantage agent have?

I do not work the medicare market, so please bear with me. I believe that the medicare market is still somewhat fragmented as compared to what I was referencing in the model for Exchanges. Meaning that if I were eligible for medicare I do not have a single place to go and get my information about available plans, make a purchase and enroll. Is this correct?

 

[Yagents]

http://www.planprescriber.com/

Have you looked at the CA plan template on the other thread? Take that not so simple template, and add in 5 different carrier versions.

Since you do self funded plans, and do not participate in the IFP market, I just dig your educated guesses.

 

[taterpeeler]

I do not work the medicare market, so please bear with me. I believe that the medicare market is still somewhat fragmented as compared to what I was referencing in the model for Exchanges. Meaning that if I were eligible for medicare I do not have a single place to go and get my information about available plans, make a purchase and enroll. Is this correct?

yes you do... medicare.gov

 

[leevena]

Apache Tomcat/7.0.6 - Error report

Have you looked at the CA plan template on the other thread? Take that not so simple template, and add in 5 different carrier versions.

Since you do self funded plans, and do not participate in the IFP market, I just dig your educated guesses.

So what part of my response did you not like? I stated there was still a role for agents, just tougher and in different ways. My post was in response to a question about why agents may feel their incomes/livelhood is at risk.

 

[TonyC]

riddle me this tony and lee... based on your comments what value does the medicare advantage agent have?

Charles,

I'm not an expert on medicare and we are just engaging in friendly talk (right.... BUT...me thinks the Senior Market is not under attack. Its the indy customer.

Bare with me Charles...do you think the Indy Market will survive for agents?

 

[pahealthquotes]

Standardized plans mean nothing.. Medicare has standardized plans and SENIORS are more confused now than ever. They don't know how Medicare works thus the Agent steps in and helps. Most people getting health benefits in America receive them from their employer. When its time for them to purchase on their own..whoa Nelly its like the world is coming to an end and guess what ? the agent steps in to direct them. face it folks when it comes to Health Care most are simply lost.. kinda like me when I look at tax documents, I call my accountant and say here you go, please take care of this.

 

[taterpeeler]

Charles,

I'm not an expert on medicare and we are just engaging in friendly talk (right.... BUT...me thinks the Senior Market is not under attack. Its the indy customer.

Bare with me Charles...do you think the Indy Market will survive for agents?

yes I do... for the older agent. new guys no, I think due to no block of business. those that assigned their commission are post tosties.