Insurance Agents Lose Job Security with Obamacare Ruling

[Liz]

Seems like some mis-information in here, the MLR rules have been in effect for years.


Insurance Agents Lose Job Security With Obamacare Ruling - Forbes

What do you think about this statement "There will be a huge migration of business from traditional healthcare insurance agents and brokers to the exchanges."

Any truth to that?

 

[somarco]

The article is written by someone who does not know or understand the health insurance market. If you scroll to the bottom and read the bio of the author the tone and lack of information becomes self explanatory.

About Me: I am an

engineer and nuclear physicist

by background. I founded two Inc. 500 companies, and have been involved in over 50 entrepreneurial ventures.

This guy knows as much about health insurance as I do about splitting atoms.

 

[RayNY]

His guess is as good as anyone's. From my experience, a lot of the policymakers assume people will make heavy use of the marketplaces and FAQ's contained within, and shy away from advice from trained and experienced humans.

Many of us feel the opposite.

This comes down to our drive to get the best product for our client after considering their circumstance, and the government's drive to get them any product regardless of circumstance.

Unfortunately, we know who has the power in this situation. Brokers wont disappear, but a lot of people will end up with any old coverage, not what would be best for them.

 

[BenefitDesigner]

Just happened across this thread sorry for posting on something this old but to update you on what is going on.


I own a small health and life shop, I have call tracking and I would get about 12-13 calls a month for health insurance. Since Oct 1st - Jan 5th I received 2 calls from those ads, I enrolled one of the 2. I enrolled two P&C clients that called due to ACA website problems. Since Jan 5th - Feb 14th I have received NO CALLS.


It's me vs the gov't and I am loosing, I can't afford to run national TV ads or get in front of the nation and tell people to call me or visit my website. I have been replaced by un-licensed enrollers.
-----------------------------------------------
MLR discussion -- the MLR was started in 2010 and commissions were cut 50% and again this year. On group I make GROSS 4-5% tops to put that in perspective I get paid 1/2 of sales tax or 1/3 to 1/4 what you tip your wait staff.


On of the biggest expenses and something to keep you from bankruptcy I have to spend over $2,000 a year in fees + E&O insurance + CE classes to get paid 4-5% or less. Needless to say I am starting another business I can do on the weekends and make money and steering my insurance business toward P&C and Life.


Many small agents will or soon will be out of a job but I guess they can get free insurance , free food , and live off the gov't they paid into all these years and not worry about spending thousands on fees and taxes.


Good day

 

[number9]

Just happened across this thread sorry for posting on something this old but to update you on what is going on.


I own a small health and life shop, I have call tracking and I would get about 12-13 calls a month for health insurance. Since Oct 1st - Jan 5th I received 2 calls from those ads, I enrolled one of the 2. I enrolled two P&C clients that called due to ACA website problems. Since Jan 5th - Feb 14th I have received NO CALLS.


It's me vs the gov't and I am loosing, I can't afford to run national TV ads or get in front of the nation and tell people to call me or visit my website. I have been replaced by un-licensed enrollers.
-----------------------------------------------
MLR discussion -- the MLR was started in 2010 and commissions were cut 50% and again this year. On group I make GROSS 4-5% tops to put that in perspective I get paid 1/2 of sales tax or 1/3 to 1/4 what you tip your wait staff.


On of the biggest expenses and something to keep you from bankruptcy I have to spend over $2,000 a year in fees + E&O insurance + CE classes to get paid 4-5% or less. Needless to say I am starting another business I can do on the weekends and make money and steering my insurance business toward P&C and Life.


Many small agents will or soon will be out of a job but I guess they can get free insurance , free food , and live off the gov't they paid into all these years and not worry about spending thousands on fees and taxes.


Good day

I've done well in this business but I have seen more and more ridiculous regulations every year. In all lines of business I do and have done Mortgages, annuities, life, Medicare supplements and health insurance. In generally my commissions have gotten lower and I have more government regulations and increased taxes. It has now gotten to the point were you have to specialize in one product line just to stay current with everything. unfortunately ludicrous bureaucratic policies are harder to predict than industry trends.


The guy who wrote this article for Forbes is completely clueless. Agents will have a roll but commissions on healthcare are getting to a point where you will have to do volume and may still lose money.


If they ever get this thing rolling and agents put there client in the exchange the will drop the commissions to a point in the future where it is just not worth your time.

 

[AllenChicago]

3-17-2014

It looks like HHS has stepped up their war against agents another notch. They're removing barriers that many states have erected to restrict what a Navigator is allowed to do. Granting Exchanges the ability to hire criminals and terrorists was not generous enough?

Story: Feds slash at state PPACA navigator curbs | BenefitsPro

Any HHS guidance come out recently to help the agent/broker? Oh, yeah .."change your password to protect yourself"... I forgot.
ac

 

[somarco]

Gosh AC. You are beginning to sound like Chumps.

Get out. Get out now before it is too late.

 

[kgmom219]

Honestly, how has life changed? (Besides MLR and commissions!)

Its all about how many people you can get in front of. Some people use an agent. Some people go direct. Some people use you. Some people may use a different agent. Or a navigator. Everyone relax. Follow your marketing plan, adjust it when you aren't getting in front of enough people. Sell some policies. Its going to be OK. The apocalypse isn't here....

 

[taterpeeler]

Its all about how many people you can get in front of. Some people use an agent. Some people go direct. Some people use you. Some people may use a different agent. Or a navigator. Everyone relax. Follow your marketing plan, adjust it when you aren't getting in front of enough people. Sell some policies. Its going to be OK. The apocalypse isn't here....

it is if you are a belly button to belly button agent... that I can promise you...

 

[kgmom219]

it is if you are a belly button to belly button agent... that I can promise you...

Then I guess they need to adjust with the times....