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And the hits just keep on comin'!
2 Calif. health insurers to pay $13M for dropping clients - USATODAY.com
2 Calif. health insurers to pay $13M for dropping clients - USATODAY.com
IFP in USA Today
- Thread starter moonlightandmargaritas
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Sometimes, more times than I care to consider, insurance companies are their own worst enemy. The "bean counters" forget that as part of the reason for existence of insurance is a social compact. It is something many of today's insurers forget and is why they take such heat from society.
In my state, auto insurance is required and there are P&C agents on most every corner. I can count 5 within a 2 mile drive in one direction. If (and that's a big if) the government mandated it, I believe there would still be a need for agents. Just my opinion.
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And what is the commission?
You mean just like Individual Health sales in Massachusetts, New Jersey and New York? How is that going? GI works so well in these states and agent commission? Ohhh wait there is none other than a token maybe a few dollars.
- 2,908
Correct. I am in a guaranteed issue state where the future is already here. There are no agents to speak of. Everything is phone or internet enrollment with Anthem or Aetna, the only two carriers left after all the other carriers bailed out. An occasional Mega agent sliming around here and there. That's it.
Guaranteed issue. Coming to your neighborhood soon.
Winter
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Mitt Romney is a Masshole douchebag, I can't believe the prick is Republican. Keep America red.
Yes in my State auto insurance is required and there are a plethora of agents. Aside from selling, the agency type system does a lot of the admin stuff, i.e. change autos, add drivers, accidents, etc.
Maybe I didn't present it properly. This is how the government looks at it.
With health insurance there is a admin factor but it is much smaller than the P&C admin. The insurers already admin Medicare and could morph all health insurance admin into their structure. No agent needed.
If there was only one plan, the government universal plan, no agents are needed to sell or explain the plan.
As in other countries that have universal health, there will be a place for agents to sell supplemental health. Plans to fill in the gaps.
I still stand on the belief that if insurance companies could figure out a way to do away with agents, they would go for it.
Maybe I didn't present it properly. This is how the government looks at it.
With health insurance there is a admin factor but it is much smaller than the P&C admin. The insurers already admin Medicare and could morph all health insurance admin into their structure. No agent needed.
If there was only one plan, the government universal plan, no agents are needed to sell or explain the plan.
As in other countries that have universal health, there will be a place for agents to sell supplemental health. Plans to fill in the gaps.
I still stand on the belief that if insurance companies could figure out a way to do away with agents, they would go for it.
The commission is 10%-15% for most P&C agents. Not really that different than health insurance.
But the more I think about it, this really isn't an accurate comparison so I shouldn't have even brought it up. You see, auto insurance is required if you are going to drive a car. But it is not guarantee issue. If you have a bad driving record, you are going to have a tough time getting coverage. And at the very least, pay a much higher price.
Even with GI health insurance, we are talking about two different things when discussing universal coverage. When I think of universal coverage, I think of Medicare. I definitely don't want GI since it actually increases the cost of coverage. And I don't want universal coverage either. I'm all for a state high risk pool. But if we did have universal coverage (i.e. - Medicare) there would likely be supplements for that coverage and thus a need for agents.
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That's an area where we don't know. It is certainly possible but there are major differences in comparison with Medicare. First of all, the basic coverage is only $96 a month for most seniors. So you can add a supp for maybe $160 (varies of course) and then even add on a drug plan for 30 dollars and it is still affordable for many given that it is a necessity. Seniors count their pennies of course but many also have the dollars. In addition, the basic medicare plan does not have any options. You get Part A and B and if you want more you go to a supp or an MA. So medicare is structured to head you in the direction of supplements if you want more.
However, with private plans for younger folks, the carriers offer plans with different levels of coverage. So if a client wants additional coverage for gaps and has another $160 a month to spare (example only) he just picks a higher level plan. I dont assume that we will end out with one size fits all like medicare and whether there is an active market for supps depends on how much is available right there with the carrier offering the basic coverage. The environment will be one where the carrier already has you calling them or at their website based on their mailings or TV ads. You want supplement coverage? Just click that box. No agent will call and no health issues to be discussed.
Winter
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