If They Force You to BUY....?

[somarco]

I've already received an advance of $750,000 from Obama to help people with their free insurance.

A grant, right?

it will require carriers to compete on price, network, and reputation.

Most carriers have a lousy reputation in the public realm, so that's a non-starter.

Several carriers have indicated they will use very limited, almost HMO-like networks inside the exchange . . . broader networks outside the exchange. This will also allow them to price effectively for exchange traded plans.

 

[taterpeeler]

A grant, right?




Several carriers have indicated they will use very limited, almost HMO-like networks inside the exchange . . .

not to sound like im beating a dead horse but that kind of resembles a MAPD plan....

 

[Ann H]

Tony, Peeler has made some very important observations. This new health insurance market is good for agents who have experience, a solid current book of business and/or income and assets to help them make it through the next 11-14 months. For others, the health insurance business can be a killer.

Leevena, YAgents made a great suggestion by referring you to another thread. On another recent thread Dave020 posted California's proposed standard benefit plans for the CA exchange. It has just a few copay and a few co-insurance plans, some modifications for those at 100% to 150% of Federal Poverty Level, a catastrophic plan for those under age 30, and some HSA's. These are the "standardized" plans for CA. That doesn't mean there won't be more plans outside the exchange. Then there are networks like Somarco mentioned, HMO/ACO's, etc. On top of that, the client must know their household MAGI and their answer to the other rules for qualifying for a subsidy to see if they should be buying inside the exchange. If not, then perhaps they want plans outside the exchange, which could be ----- I dunno ---- how many plans? Take a look at the document Dave020 posted, and read the thread, and then tell me if buying health insurance online will be like Travelocity for airline tickets. I respect you, Leevena, but I think the agent will add more value than otherwise expected. It appears the states and HHS have recently realized that. Perhaps it was due to the PCIP enrollment of about 2% of the number that were expected to enroll. PCIP came with a simple website, a simple enrollment process, and just a bare number of simple plans. But enrollment was anemic and people were confused.

 

[leevena]

Tony, Peeler has made some very important observations. This new health insurance market is good for agents who have experience, a solid current book of business and/or income and assets to help them make it through the next 11-14 months. For others, the health insurance business can be a killer.

Leevena, YAgents made a great suggestion by referring you to another thread. On another recent thread Dave020 posted California's proposed standard benefit plans for the CA exchange. It has just a few copay and a few co-insurance plans, some modifications for those at 100% to 150% of Federal Poverty Level, a catastrophic plan for those under age 30, and some HSA's. These are the "standardized" plans for CA. That doesn't mean there won't be more plans outside the exchange. Then there are networks like Somarco mentioned, HMO/ACO's, etc. On top of that, the client must know their household MAGI and their answer to the other rules for qualifying for a subsidy to see if they should be buying inside the exchange. If not, then perhaps they want plans outside the exchange, which could be ----- I dunno ---- how many plans? Take a look at the document Dave020 posted, and read the thread, and then tell me if buying health insurance online will be like Travelocity for airline tickets. I respect you, Leevena, but I think the agent will add more value than otherwise expected. It appears the states and HHS have recently realized that. Perhaps it was due to the PCIP enrollment of about 2% of the number that were expected to enroll. PCIP came with a simple website, a simple enrollment process, and just a bare number of simple plans. But enrollment was anemic and people were confused.

I don't disagree with your main thought, in fact I said there will be a role for agents, just different and more difficult. However, in the long run I doubt if the agent will have a significant role within the exchange plans. As carriers get squeezed between high costs and limited ability to make a profit, they cost of agent commissions will become too easy a target.

 

[Ann H]

I don't disagree with your main thought, in fact I said there will be a role for agents, just different and more difficult. However, in the long run I doubt if the agent will have a significant role within the exchange plans. As carriers get squeezed between high costs and limited ability to make a profit, they cost of agent commissions will become too easy a target.

I agree. I think we have 3-4 years, maybe 7 at the very most.

 

[somarco]

I think we have 3-4 years, maybe 7 at the very most.

It depends.

If Obamacare is unraveled, either financially or the result of voter revolt, agents may once again play a major role in the process with a free market system. It might be 2016 or so before that happens, but I still believe there is a good chance Obamacare will crash and burn.

If not, agents have 2 - 3 years tops before they are relegated to the sidelines, selling supplemental coverages.

 

[leevena]

It depends.

If Obamacare is unraveled, either financially or the result of voter revolt, agents may once again play a major role in the process with a free market system. It might be 2016 or so before that happens, but I still believe there is a good chance Obamacare will crash and burn.

If not, agents have 2 - 3 years tops before they are relegated to the sidelines, selling supplemental coverages.

I hope you are right my friend, but I don't see much hope for the agent who wants to work with the exchanges.

 

[somarco]

I don't plan on working with the exchanges, Lee. Don't see much future there. Hoping for something outside but if not, plan B

 

[leevena]

I don't plan on working with the exchanges, Lee. Don't see much future there. Hoping for something outside but if not, plan B

Try the self-funded for medical. A lot of new stuff coming out, including products down to 5 lives. Not that difficult to learn/understand, especially when trying to understand when it makes sense and when it does not.

good luck

 

[somarco]

Perhaps we will talk again, Lee, after the first of the year. I wrote down to 25 lives in my stop loss career. Only had a few blow up. Biggest threat was the fully insured pool products (Hancock, Equitable, Great West) that scarfed up the cases that had a few bad years.